Suppose an Industry Is Made Up of 25 Firms, All

question 100

Multiple Choice

Suppose an industry is made up of 25 firms, all with equal market share.The four-firm concentration ratio of this industry is

• A)16%.
• B)20%.
• C)25%.
• D)It cannot be determined from the information given.

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Definitions:

Setup Cost

The cost to prepare a machine or process for production.

Clearance Priced

Items sold at a significant discount to clear inventory, often due to overstock or the discontinuation of specific products.

Demand Level

The quantity of a product or service that consumers are willing and able to purchase at various prices during a specified time period.