Suppose That Total Sales in an Industry in a Particular

question 40

Multiple Choice

Suppose that total sales in an industry in a particular year are $800 million and sales by the top four sellers are $50 million, $40 million, $30 million, and $30 million, respectively. We can conclude that

• A) this industry is an oligopoly.
• B) this industry is monopolistically competitive.
• C) the concentration ratio is 25 percent.
• D) firms in this industry likely collude with each other.

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Definitions:

Multiple Support Agreement

An agreement where multiple parties contribute to the support of an individual, allowing one to claim a tax exemption under certain conditions.

Claim the Mother

The act of declaring a mother as a dependent or beneficiary for tax or legal purposes, subject to specific criteria.

Special Test for Qualifying Child

Criteria established by tax authorities to determine if a child is eligible for tax benefits, focusing on relationship, age, residency, and support.

Gross Income Test

A criterion used to determine if someone can be claimed as a dependent based on their income level.