Suppose an Industry Is Made Up of 25 Firms, All

question 100

Multiple Choice

Suppose an industry is made up of 25 firms, all with equal market share.The four-firm concentration ratio of this industry is

• A)16%.
• B)20%.
• C)25%.
• D)It cannot be determined from the information given.

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Definitions:

Outsource

The practice of contracting work out to an external organization rather than performing it in-house.

Information

Data that has been processed in such a way that it can be used to inform decisions, strategies, and actions.

Supply Chain

A composite of enterprises, participants, procedures, information, and instruments implicated in the conveyance of a product or service from the vendor to the patron.

Lost Sales

Potential sales that cannot be realized due to stockouts, inadequate inventory, or other operational issues.