Suppose That Total Sales in an Industry in a Particular

question 198

Multiple Choice

Suppose that total sales in an industry in a particular year are $600 million and sales by the top four sellers are $200 million, $150 million, $100 million, and $50 million, respectively. We can conclude that

• A) price leadership exists in this industry.
• B) the concentration ratio is more than 80 percent.
• C) this industry is a differentiated oligopoly.
• D) the firms in this industry face a kinked demand curve.

---

Definitions:

PLCs

Specialized computers, known as Programmable Logic Controllers, are utilized for managing and controlling machines and processes in the industrial sector.

Relay-Type

Relay-Type control systems use electromechanical relays for switching operations in electrical circuits, offering physical isolation and power amplification.

Output Interface Module

A component within an automation system that processes control signals from a PLC or processor to drive external devices.

Load Devices

Equipment or components that consume electrical power in a circuit, typically transforming it into another form of energy like light, heat, or motion.