If an Industry Is Made Up of Five Identical Firms

question 69

Multiple Choice

If an industry is made up of five identical firms, the four-firm concentration ratio is

• A)5%.
• B)20%.
• C)80%.
• D)100%.

---

Definitions:

Casualty Loss Deduction

A tax deduction for property losses as a result of a sudden, unexpected, or unusual event.

Federal Disaster Area

An area officially declared by the government to be in a state of emergency due to a disaster, affording affected individuals potential tax relief and other benefits.

Insurance Settlement

A financial payment made by an insurance company to a policyholder or claimant as a resolution for a filed claim against a policy.

Medical Expense

Expenses related to diagnosing, curing, mitigating, treating, or preventing illnesses, as well as for therapies that impact any body part or its functions.