The eight-firm concentration ratio for an industry is 0.65. If the top four firms in the industry account for $40 million in sales, what do total sales equal?
A)$26 million
B)$45 million
C)$11 million
D)$20 million
E)There is not enough information to answer the question.

Question

Quizplus · Accepted Answer

The eight-firm concentration ratio of 0.65 indicates that the top eight firms account for 65% of total sales in the industry. However, the information provided only gives the sales for the top four firms, not the total sales or the sales of the top eight firms. Therefore, we cannot determine the total sales in the industry with the information given.

The Eight-Firm Concentration Ratio for an Industry Is 0