In the rain coat industry the sales of the firms is as follows: Firm A $625...

Question

Question

In the rain coat industry the sales of the firms is as follows:

Firm A $625 Firm B $500 Firm C $475

Firm D $400 Firm E $350 Firm F $350

Firm G $300 Firm H $150 Firm I $75

Based on this information what is the four firm concentration ratio for the rain coat industry?

Group of answer choices

0.62

0.65

0.57

0.23

business economics

Answer 1

Answer #1

Answer :

Four firm concentration ratio = Four largest sales by the firms in the industry / Total industry sales

Largest four sales are made by the firms : Firm A , Firm B, Firm C and Firm D

Four firm concentration ratio = $(625 + 500 + 475 + 400)/ $(625 + 500 + 475 + 400 + 350 + 350 + 300 + 150 + 75)

= $2000 / $3225 = 0.62

Answer : 0.62 is the four firm concentration ratio for the rain coat industry

Answer 2

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