Suppose That Total Sales in an Industry in a Particular

question 198

Multiple Choice

Suppose that total sales in an industry in a particular year are $600 million and sales by the top four sellers are $200 million, $150 million, $100 million, and $50 million, respectively. We can conclude that

• A) price leadership exists in this industry.
• B) the concentration ratio is more than 80 percent.
• C) this industry is a differentiated oligopoly.
• D) the firms in this industry face a kinked demand curve.

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Definitions:

Atomic Statements

Simple, indivisible statements that express a single fact.

Main Components

Essential parts or elements of a system, mechanism, or compound that are critical to its function or structure.

Connectives

Logical operators used in logic and mathematics to connect two or more propositions or sentences to form a more complex statement.

Main Connective

In a logical expression, the operator that determines the overall value of the expression, acting as the primary link between components.