Question
The following table shows the total output produced by the top six firms as well as the total industry output for four industries. (8 Points)
The following table shows the total output produced by the top six firms as well as the total industry output for four industries. (8 Points)
Firm | Industry A | Industry B | Industry C | Industry D |
1 | 13,250 | 8,750 | 1,750 | 15,000 |
2 | 10,975 | 7,500 | 1,725 | 14,000 |
3 | 8,175 | 6,400 | 1,700 | 13,000 |
4 | 4,275 | 5,000 | 1,675 | 12,000 |
5 | 1,250 | 4,250 | 1,650 | 11,000 |
6 | 875 | 4,000 | 1,625 | 10,000 |
Total | 45,350 | 70,900 | 30,125 | 120,000 |
a. What is the concentration ratio for Industry A? (1 point)
b. What is the concentration ratio for Industry B? (1 point)
c. What is the concentration ratio for Industry C? (1 point)
d. What is the concentration ratio for Industry D? (1 point)
e. Rank the four industries by their concentration ratio (from highest ratio to lowest) and using the quartile rule, that is,
output is < or =25%-Competitive,
output > 25% and < or =50% -Monopolistic Competitive Low ,
output is >50% and < or =75%-Monopolistic Competitive High,
output is >75% and < 100% -Oligopoly
categorize each as competitive, monopolistic competitive low, monopolistic competitive high, or oligopoly (4 points)
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