-Based on the Above Table, Which Shows the Firms and Sales

question 49

Multiple Choice

-Based on the above table, which shows the firms and sales in an industry, what is the four-firm concentration ratio?

• A) 55
• B) 74
• C) 100
• D) $740 million

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Definitions:

Economic Profit

The difference between total revenues and total costs, including both explicit and implicit costs, representing the financial gain in undertaking a particular business activity.

MR = MC

An economic condition where a firm's marginal revenue equals its marginal cost, often used to determine the profit-maximizing level of production.

Market Equilibrium

A state where the supply of a good matches its demand, with no external pressure to change the price or quantity available in the market.

Economic Profits

The difference between total revenues and total costs, including both explicit and implicit costs, representing the additional gain to entrepreneurs beyond the normal profit rate.