Question

Ch111 Practice Exercises Svod 01 points Pepsi 27 Coca-Cola 42.5 ebook Print References Dr Pepper Snapple Group 173 Others 9.2 Royal Crown 4.0 Instructions: Round your responses to one decimal place a. What is the concentration ratio in the U.S. soda market? percent b. If Dr Pepper Snapple split into two equal-sized firms, what is the new concentration ratio? Dt] percent

Answer 1

The four firm concentration ratio in this industry, that is US soda market is

=27(Pepsi) +42.5 (Coca-Cola) + 17.3 (Dr Pepper Snapple) +4 (Royal Crown) = 90.8

If Dr Pepper Snapple splits into two equal sizes, then the 4 firm concentration ration will be 27+42.5+8.65+8.65 = 86.8 (The new concentration ratio after splitting)