Based on the Table Below,the Four-Firm Concentration Ratio Equals What

question 237

Multiple Choice

Based on the table below,the four-firm concentration ratio equals what percentage of annual sales? $$\begin{array} { l c } \text { Firm } & \begin{array} { c } \text { Annual Sales } \\\text { (\$ millions) }\end{array} \\\hline 1 & 20 \\2 & 30 \\3 & 5 \\4 & 5 \\5 \text { through } 100 & 40 \\\text { Total } & 100 \\\hline\end{array}$$

• A)33 percent
• B)40 percent
• C)60 percent
• D)100 percent

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Definitions:

Creative Destruction

A concept in economics attributed to Joseph Schumpeter, describing the process by which old industries or technologies are destroyed and replaced by new ones.

Dominant Firms

Companies that have a major share of the market sales, influence, or both, enabling them to set prices within the industry.

Planned Economies

Economic systems where government agencies centrally plan and direct all major economic activities, assigning resources and determining outputs with the aim of achieving specific goals.

U.S. Firms

Companies or businesses that are registered, operate, or have their headquarters in the United States.