The Following Table Shows the Four-Firm Concentration Ratios for Five

question 136

Multiple Choice

The following table shows the four-firm concentration ratios for five separate industries.Use this table to answer the following questions:

-In which industry do the four largest firms collectively have the most market power?

• A) beer brewing
• B) breakfast cereals
• C) chocolate confections
• D) adhesive manufacturing
• E) plastics product manufacturing

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Definitions:

Family Businesses

Family businesses are owned and controlled by family members.

Succession Plans

Defined strategies or processes for identifying and developing new leaders who can replace old leaders when they leave, retire, or pass away.

First-mover Advantage

The benefit gained by the initial significant occupant of a market segment, often allowing for the establishment of strong brand recognition and customer loyalty.

Niche Manipulation

Niche manipulation refers to the strategic actions taken by organizations or individuals to shape or adapt their specific segment of the market to gain a competitive advantage.