Table 25.2 $$\begin{array} { | l | r | c | }
\hline{ \text { Pool Sweeper } } & \text { Output (Revenue) } & \text { Market Share (\%) } \
\hline \text { North Star } & \$ 20,000 & \
\hline \text { Hurricarne } & \$ 16,000 & \
\hline \text { Blue Lagoon } & \$ 2,000 & \
\hline \text { Clean Sweep } & \$ 2,000 & \
\hline
\end{array}$$ Refer to Table 25.2.Assume there are only four firms in the pool sweeper industry.What is the market share for North Star?
A)20 percent.
B)50 percent.
C)10 percent.
D)5 percent.

Question

Table 25.2 $$\begin{array} { | l | r | c | } 
\hline{ \text { Pool Sweeper } } & \text { Output (Revenue) } & \text { Market Share (\%) } \
\hline \text { North Star } & \$ 20,000 & \
\hline \text { Hurricarne } & \$ 16,000 & \
\hline \text { Blue Lagoon } & \$ 2,000 & \
\hline \text { Clean Sweep } & \$ 2,000 & \
\hline
\end{array}$$ Refer to Table 25.2.Assume there are only four firms in the pool sweeper industry.What is the market share for North Star?
A)20 percent.
B)50 percent.
C)10 percent.
D)5 percent.

Quizplus · Accepted Answer

The total revenue from all firms is $20,000 (North Star) + $16,000 (Hurricarne) + $2,000 (Blue Lagoon) + $2,000 (Clean Sweep) = $40,000. North Star's revenue is $20,000, which is half of the total market revenue. Therefore, North Star's market share is 50 percent.

Table 252 Refer to Table 25