An Industry Is Comprised of Ten (10) Firms, Each with an Equal

question 83

Multiple Choice

An industry is comprised of ten (10) firms, each with an equal market share.What is the 4-firm concentration ratio of this industry?

• A)0.2.
• B)0.4.
• C)0.6.
• D)0.8.

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Definitions:

Machine-Hours

A measure of the total time that machines are operating in the production process, often used as a basis for allocating manufacturing overhead costs.

Markup

The additional sum included in the goods' cost price to account for overhead expenses and profit.

Manufacturing Cost

The total cost involved in making a product, including direct materials, direct labor, and manufacturing overhead.

Fixed Manufacturing Overhead

Costs that do not vary with the level of production or sales, such as rent, salaries, and insurance of a manufacturing facility.