ZuoTi.Pro
Question

Ten firms compete in a market to sell product X. The total sales of all firms...

Ten firms compete in a market to sell product X. The total sales of all firms selling the
product are $2 million. Ranking the firms’ sales from highest to lowest, we find the
top four firms’ sales to be $260,000, $220,000, $150,000, and $130,000, respectively.
Calculate the four-firm concentration ratio in the market for product X. (LO1)

business   economics   
0 0
Add a comment Improve this question Transcribed image text
Next > < Previous
Sort answers by oldest

Homework Answers

Answer #1

Total sales by four firms = 260000 + 220000 + 150000 + 130000 = 760000

Four firm concentration ratio = Total sales by four firms / total sales by all firms = 760000 / 2000000 = 0.38 or 38%

2 0
Add a comment
Know the answer?
Add Answer to:
Ten firms compete in a market to sell product X. The total sales of all firms...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions

  • answer the below question please make sure it is clear , thanks Q2. Ten firms compete...

    answer the below question please make sure it is clear , thanks Q2. Ten firms compete in a market in Dubai to sell drinking water. The total sales of all the firms are 2million dirhams. Ranking the firms' sales from highest to lowest, we find the top four firms’ sales to be 260,000 AED, 220,000 AED, 150,000 AED and 130,000 AED respectively. a) Calculate the four-firm concentration ratio in this market? b) Comment on your finding in the above question....

  • Item1 1points ItemSkipped eBook Print References Check my workCheck My Work button is now disabled Item...

    Item1 1points ItemSkipped eBook Print References Check my workCheck My Work button is now disabled Item 1 Item 1 1 points Item Skipped Ten firms compete in a market to sell product X. The total sales of all firms selling the product are $2,000,000. Ranking the firms’ sales from highest to lowest, we find the top four firms’ sales to be $260,000, $220,000, $150,000, and $130,000, respectively. Calculate the four-firm concentration ratio in the market for product X.

  • The top six firms in an industry have total sales of the following respectively: $70 million,...

    The top six firms in an industry have total sales of the following respectively: $70 million, $40 million, $40 million, $30 million, $10 million, $10 million; sales of all other firms in the industry totals $20 million. For this industry, what is the 4-firm concentration ratio? Based on the value calculated, what market structure does this industry represent and why?

  • Two firms compete in a market to sell a homogeneous product with inverse demand function P...

    Two firms compete in a market to sell a homogeneous product with inverse demand function P = 600 – 6Q. Each firm produces at a constant marginal cost of $300 and has no fixed costs. Use this information to compare the output levels and profits in settings characterized by Cournot, Stackelberg, Bertrand, and collusive behavior. Please show steps.

  • Please answer step by step: Two firms compete in a market to sell a homogeneous product...

    Please answer step by step: Two firms compete in a market to sell a homogeneous product with inverse demand function P= 400-2Q. Each firm produces at a constant marginal cost of $50 and has no fixed costs. Use this information to compare the output levels and profits in settings characterized by Cournot, Stackelberg, Bertrand, and collusive behavior.

  • 2. Working with Numbers and Graphs Q3 Total industry sales are $320 million. The top four...

    2. Working with Numbers and Graphs Q3 Total industry sales are $320 million. The top four firms account for sales of $25 million, $10 million, $9 million, and $4 million, respectively. The four-firm concentration ratio is ___ (Note: Enter the concentration ratio as a percentage.)

  • Please show step by step. Two firms compete in a market to sell a homogeneous product...

    Please show step by step. Two firms compete in a market to sell a homogeneous product with inverse demand function P= 600 - 3Q. Each firm produces at a constant marginal cost of $300 and has no fixed costs. Use this Information to compare the output levels and profits in settings characterized by Cournot, Stackelberg, Bertrand, and collusive behavior. Instruction: Do not round Intermediate calculations. Round final answers to two decimal places for Cournot values. Cournot output for each firm:...

  • Two firms compete in a market to sell a homogeneous product with inverse demand function. P...

    Two firms compete in a market to sell a homogeneous product with inverse demand function. P = 500 – 2Q. Each firm produces at a constant marginal cost of $100 and has no fixed costs. Use this information to compare the output levels and profits in settings characterized by Cournot, Stackelberg, Bertrand, and collusive behavior. Show the detail of your work and summarize your results in a table. Outputs Profits il= Cournot 12= Stackelberg Ql= Q2= Q1= Q2= Ql= Q2=...

  • Suppose that market for good X has a four-firm concentration ratio of 0.80. Having worked for...

    Suppose that market for good X has a four-firm concentration ratio of 0.80. Having worked for the four largest firms in the industry, you know the sales for these four firms are given by $100,000, $125,000, $150,000, and $175,000. Based on this information, what are sales for the remaining firms in the industry?

  • Consider a market where N firms produce a homogeneous product and compete by simultaneously setting quantities....

    Consider a market where N firms produce a homogeneous product and compete by simultaneously setting quantities. The inverse demand function has the general form P PO-P(qi +q2 +q3 + + qv), where Q is total quantity produced, qi is the quantity produced by firm i and P is the market price. The demand curve is downward sloping, so P10 < 0. The total cost of firm i is given by Cig). (0) Show that P- MC qi i , where...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT