An Industry Is Composed of 10 Firms, All with Equal

question 59

Multiple Choice

An industry is composed of 10 firms, all with equal sales. The four-firm concentration ratio in this industry is

• A)0.40.
• B)0.80.
• C)10.00.
• D)There is not enough information provided to answer this question.

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Definitions:

Balance Sheet

A financial statement that summarizes a company's assets, liabilities, and shareholders' equity at a specific point in time.

Finished Goods Inventory

Items in a manufacturer's inventory that are completed and ready for sale.

Direct Materials

These are raw materials that are directly used in the production of a product and are easily traceable to the product itself.

Materials Inventory

The total cost of all the materials that are currently stored by a company and that will be used in production.