The Accompanying Table Shows the Total Dollar Amount of Sales

question 28

Multiple Choice

The accompanying table shows the total dollar amount of sales in 2012 for the four largest firms in the adhesive manufacturing industry. Total industry sales in 2012 were $782,000. Use this table to answer the questions. $\begin{array}{lr}\text { Firm Name }&\text { Dollar Amount of Sales in } 2012\\\text { Ghes R Us, Inc. } & \$ 362,000 \\\text { Ghe Down, Inc. } & \$ 105,000 \\\text { Sticky, Inc. } & \$ 85,000 \\\text { All Ghes, Inc. } & \$ 76,000 \\\text { All other firms in industry combined } & \$ 154,000\end{array}$
-If Glues R Us, Inc. split into two separate companies, the concentration ratio would __________ and the market price of adhesive would likely __________.

• A) increase; fall
• B) increase; rise
• C) decrease; not change
• D) decrease; fall
• E) decrease; rise

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Definitions:

Personality Variables

Characteristics or traits that vary among individuals, influencing behavior and outcomes.

Market Segments

Subsets of a market comprised of individuals or organizations with one or more shared characteristics.

Tying Agreement

A type of agreement where the sale of one product (the tying product) is made conditional on the purchase of a second, distinct product (the tied product).

Trade Name

The name under which a business operates or is known to the public, which might be different from its legal, registered name.