-The Table Above Shows Sales of the Firms in the Chocolate

question 225

Multiple Choice

-The table above shows sales of the firms in the chocolate industry. The four-firm concentration ratio in the industry is

• A) 52 percent.
• B) 65 percent.
• C) 72 percent.
• D) 80 percent.

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Definitions:

Producer Surplus

The difference between the amount producers are willing to accept for a good or service versus the amount they actually receive in the market.

Equilibrium Price

The equilibrium price is the price at which the quantity of a good or service demanded equals the quantity supplied, leading to market balance.

Consumer Surplus

The contrast between the full amount consumers are willing to disburse for a product or service and the actual disbursement.

Price Floor

A government-imposed minimum price that can be charged for a good or service, intended to prevent prices from dropping too low.