Suppose That There Are Two Industries, a and B

question 74

Multiple Choice

Suppose that there are two industries, A and B.There are five firms in industry A with sales at $5 million, $2 million, $1 million, $1 million, and $1 million, respectively.There are 4-firms in industry B with equal sales of $2.5 million for each firm.The four-firm concentration ratio for industry A is:

• A)0.9.
• B)1.0.
• C)0.8.
• D)0.7.