Suppose That Total Sales in an Industry in a Particular

question 40

Multiple Choice

Suppose that total sales in an industry in a particular year are $800 million and sales by the top four sellers are $50 million, $40 million, $30 million, and $30 million, respectively. We can conclude that

• A) this industry is an oligopoly.
• B) this industry is monopolistically competitive.
• C) the concentration ratio is 25 percent.
• D) firms in this industry likely collude with each other.