Suppose That the Demand in a Particular Industry Is Given

question 106

Multiple Choice

Suppose that the demand in a particular industry is given by Q^d = 100 - 2P.When the market price in the industry is $10 per unit,total demand in the industry is __ __.Furthermore,assume that each of the four largest firms in the industry sell 15 units.Based on this information,the four-firm concentration ratio is ____ .

• A) 80 units; 1.00
• B) 45 units; 0.75
• C) 80 units; 0.75
• D) 45 units; 0.25

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Definitions:

Division ROI

Return on Investment for a specific division or segment within a company, measuring profitability in relation to its operating assets.

Variable Expenses

Expenses that change in proportion to the activity of a business.

Fixed Costs

Operating expenses that stay constant regardless of changes in the level of output or sales volume, like leases and salaries.

Asset Investment

The use of funds to purchase property, securities, or other assets to generate returns or achieve strategic goals.