Question

The table below shows the output (in millions of dollars) or several largest firms in some industry, as well as the industry's total output. Refer to the table to answer the following questions: (Use at least 3 decimal points in your answer and all intermediate calculations.): Output ($ value Firm $2ml $2ml $1.5ml $1.5ml $1.5ml $1.5ml Total for industry $350ml 1. The concentration ratio in this industry is 2. Based on the the concentration ratio we would be justified in concluding that this industry is likely to units. an oligopoly a competitive market a monopoly Checl

Answer 1

Since rightarrow concentration ratio is the market share of (in percent) of all the firms in an industry rightarrow Here output is given is $ mn, So we need to convert it into percent. therefore $ 350 ml = 100 % 1 = 100/350 = > 1 ml = 0.285 % So total concentration ration = 0.57 times 2 + 0.42 times 4 = 1.14 + 1.68 concn ratio = 2.82 % Since, it is 2.82, So less than 50 %, therefore it is a competitive market.