Question

Suppose the relevant market for clothing has ten fems Three of the firm each have 16. percent of total market sales, three of the tem each have 8.0 percent of manat sales and tour of the terms sach have 7 percent of total market sales The concentration rate of the four largest ferme in the industry is percent (rear your response rounded to the rear whole number

Answer 1

1) four firms concentration ratio includes top four firms with largest percentage of market share. Then the four-firm concentration ratio will 3 firms each having 16% and 1 firm having 8% market share so sum of these market share will become concentation ration = 16 + 16 + 16 + 8 = 56%

2) E) changing output

cost of changing price includes the all the above except change in output. cost of changing prices includes customer preferred product to be manufactured, manipulating price to support the customer invoice. printing cost and information to all retailers.