An Industry Is Composed of 20 Firms, All with Equal

question 22

Multiple Choice

An industry is composed of 20 firms, all with equal sales. The eight-firm concentration ratio in this industry is

• A)0.40.
• B)0.32.
• C)2.00.
• D)This cannot be determined from the information given.

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Definitions:

Quality

The degree to which a set of inherent characteristics of a product, service, or process fulfills requirements.

JIT

Just-In-Time, a management strategy that aims to increase efficiency and decrease waste by receiving goods only as they are needed in the production process.

Low Quality

A term indicating inferiority in performance, durability, or appearance of a product or service relative to expectations or standards.

TPS Employee

An employee working within the Toyota Production System, focusing on lean manufacturing and continuous improvement.