What Is the Four-Firm Concentration Ratio If the Four Largest

question 122

Multiple Choice

What is the four-firm concentration ratio if the four largest firms in an industry account for 5 percent,6 percent,7 percent,and 8 percent of total revenue?

• A)26 percent
• B)174 percent
• C)1,680
• D)There is enough information given to answer the question,but none of the answers above are correct.
• E)There is not enough information given to answer the question.

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Definitions:

Euro

The Euro is the official currency of 19 out of the 27 European Union countries, known collectively as the Eurozone, and acts as one of the world’s major currencies.

Interest Rate Parity

Interest rate parity is an economic theory that suggests the difference between the interest rates of two countries is equal to the differential between the forward exchange rate and the spot exchange rate of their currencies.

Forward Rate

The predetermined rate at which two parties will exchange currencies on a future date, agreeing upon it in the present.

Spot Rate

The present cost at which a specific asset like a commodity, currency, or security is available for purchase or sale with immediate delivery.