You Are Told That the Four-Firm Concentration Ratio in an Industry

question 40

Multiple Choice

You are told that the four-firm concentration ratio in an industry is 20. Based on this information you can conclude that

• A) each of the top four firms has 20 percent of industry sales.
• B) the four largest firms account for a combined 80 percent of the industry sales.
• C) the four largest firms account for 20 percent of industry sales.
• D) each of the four largest firms accounts for 5 percent of industry sales.

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Definitions:

Convenience Stores

Retail outlets that provide a range of everyday items such as snacks, beverages, tobacco products, and household essentials, often operating for extended hours.

Butter

A dairy product made from churning milk or cream, used as a spread or in cooking.

Stock Price

The cost of purchasing a single share of a company's stock, determined by the demand and supply in the stock market.

Apex Resources

A term potentially referring to a company, project, or materials designated as top or highest quality within a specific domain or sector.