Suppose That Total Sales in an Industry in a Particular

question 322

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:

Note Payable

A written promise to pay a specific amount of money, with or without interest, at a future date.

Total Liabilities

The sum of all financial obligations a company owes to external parties, including long-term and short-term liabilities.

Note Payable

A written promise to pay a specific amount of money, usually with interest, at a future date.

Interest Incurred

The cost of borrowing money, represented as the amount charged by a lender to a borrower for the use of assets, typically expressed as an annual percentage of the principal.