Use the Information Below to Answer the Following Questions

question 70

Multiple Choice

Use the information below to answer the following questions.
Fact 10.4.1 GameStop Racks Up the Points
No retailer has more cachet among gamers than GameStop. For now, only Wal-Mart has a larger market share-21.3% last year. GameStop's share was 21.1% last year, and may well overtake Wal-Mart this year. But if new women gamers prefer shopping at Target to GameStop, Wal-Mart and Target might erode GameStop's market share.
Source: Fortune, June 9, 2008
-Refer to Fact 10.4.1. The four-firm concentration ratio for the game market in the United States ________. The HHI for the game market in the United States ________.

• A)equals 100; equals 10,000
• B)exceeds 60; is less than 1,000
• C)is less than 60; is less than 1,000
• D)ranges from approximately 40 percent to 85 percent; ranges from approximately 900 to 2,025
• E)is close to zero; is close to zero

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Definitions:

Depreciated

The reduction in the recorded cost of a fixed asset in a manner that allocates its cost over the useful life of the asset.

Land Account

An account on the balance sheet that shows the cost of land owned by a company, not depreciated since land has an unlimited useful life.

Incidental Costs

Minor or secondary expenses associated with a primary transaction or activity.

Assessments

Evaluations or appraisals of property, performance, or ability for the purpose of taxation or determining value.