Suppose a market has five companies with market shares of 35%, 25%, 23%, 10%, and 7%....

Question

Question

Suppose a market has five companies with market shares of 35%, 25%, 23%, 10%, and 7%....

Suppose a market has five companies with market shares of 35%, 25%, 23%, 10%, and 7%.

What would the market in question 1 be considered to be?

Highly competitive

Somewhat competitive

Oligopoly

business economics

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Answer 1

Answer #1

Four firm concentration ratio = 35+25+23+10 = 93%

The market is an Oligopoly with significant market power.

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Answer 2

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