Suppose there are only three firms in a market.The largest firm has sales of $500 million,the second-largest has sales of $300 million,and the smallest has sales of $200 million.The market share of the largest firm is

Question

Quizplus · Accepted Answer

The market share of the largest firm is calculated by dividing its sales by the total sales of all three firms. The total sales of all three firms is $500 million + $300 million + $200 million = $1 billion. The market share of the largest firm is therefore $500 million / $1 billion = 50%.

Suppose There Are Only Three Firms in a Market