Answer the Following Questions Using the Information Below

question 161

Multiple Choice

Answer the following questions using the information below:
The following information is for Alex Corp:

-If the sales mix shifts to one unit of Product X and two units of Product Y, then the breakeven point will ________.

• A) increase
• B) stay the same
• C) decrease
• D) will be greater than the original breakeven point

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Definitions:

Homogeneous Oligopolists

A market structure where a few firms offer products or services that are similar in nature and hence are close substitutes for each other.

Differentiated Oligopolists

Firms within an oligopoly market structure that sell products or services that are distinguishable from each other through branding, quality, or other features.

Herfindahl Index

A measure of market concentration that squares and sums the market share percentages of all firms within an industry.

Four-Firm Concentration Ratio

The four-firm concentration ratio is a measure used to assess the competitiveness of a market by calculating the combined market share of the four largest firms within an industry.