Suppose the larger firm of a duopoly has sales of $400 million and the smaller firm has sales of $100 million.The market share of the larger firm is
A)80 percent.
B)40 percent.
C)20 percent.
D)10 percent.

Question

Quizplus · Accepted Answer

The total sales in the market are $500 million. The larger firm's sales are  $400 million, which is 80 percent of the total sales. Therefore, the market share of the larger firm is 80 percent.

Suppose the Larger Firm of a Duopoly Has Sales of $400