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:

Mental Steps

The cognitive processes involved in performing a task, making a decision, or solving a problem, often involving planning, reasoning, and memory.

Buying

The action or process of acquiring goods or services in exchange for money.

Business Proposition

A value statement that outlines why a customer should buy a product or use a service, essentially defining the purpose and benefits of the business.

Industrial Product

Goods or services sold from one business to another for the production of other goods or services, rather than for direct consumption by the consumer.