a) Calculate this industry's four-firm concentration ratio. b) Is this industry competitive? why? c) What market type does it most likely represent?

Principles of Economics 2e
2nd Edition
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
Chapter10: Monopolistic Competition And Oligopoly
Section: Chapter Questions
Problem 15CTQ: Make a case for why monopolistically competitive industries never reach long-run equilibrium.
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1. The table below shows the percentage of sales held by the four largest firms in an industry.
Company
A
B
C
D
Market
share
(percent of
sales)
12
10
5
3
a) Calculate this industry's four-firm concentration ratio.
b) Is this industry competitive? why?
c) What market type does it most likely represent?
Transcribed Image Text:1. The table below shows the percentage of sales held by the four largest firms in an industry. Company A B C D Market share (percent of sales) 12 10 5 3 a) Calculate this industry's four-firm concentration ratio. b) Is this industry competitive? why? c) What market type does it most likely represent?
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