Suppose That an Industry Consists of 100 Firms, and the Top

question 226

Multiple Choice

Suppose that an industry consists of 100 firms, and the top 4 firms have annual sales of $1 million, $1.5 million, $2 million, and $2.5 million, respectively. If the entire industry has annual sales of $8.5 million, the four-firm concentration ratio is approximately

• A) 82 percent.
• B) 50 percent.
• C) 94 percent.
• D) 70 percent.

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Definitions:

Teratogen

Any agent or substance that can cause developmental abnormalities or birth defects in an embryo or fetus when exposed during pregnancy.

Nicotine

Nicotine is a stimulant drug found in tobacco plants that affects the nervous system and is both addictive and potentially harmful.

Unborn Children

Refers to fetuses or embryos that are in the developmental stages within the womb, prior to birth.

Prenatal Development

The process of growth and development inside the womb, from conception to birth, encompassing all phases of embryonic and fetal development.