Consider Two Industries in Which Firms Hold the Following Market

question 52

Short Answer

Consider two industries in which firms hold the following market shares:
Industry A: 25%, 20%, 18%, 15%, 8%, 7%, 4%, 2%, 1%
Industry B: 30%, 10%, 9%, 8%, 8%, 8%, 8%, 6%, 6%, 5%, 2%
What are the concentration ratios for each industry? Which is more competitive?

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Definitions:

Behavioral Perspectives

A viewpoint in psychology that emphasizes the importance of observing and understanding how behavior is influenced by the environment and internal mental states.

Moderately Consistent

Describes a level of regularity and predictability in behavior or phenomena that is neither high nor low but within a middle range.

Animal Research

Scientific studies conducted on animals to gain insights into biology, psychology, and medicine that may also apply to humans.

Unscientific

Lacking adherence to the scientific method or principles, often based on beliefs not grounded in evidence or logic.