Refer to the table above. Using the four-firm concentration ratio, the upholstered furniture industry is best categorized as: $$\begin{array} { | c | c | c | }
\hline \text { Industry } & \begin{array} { c }
\text { Number of } \
\text { sellers }
\end{array} & \begin{array} { c }
\text { \% of shipments accuunted far by the } 4 \
\text { larget comnanies }
\end{array} \
\hline \text { Tires } & 15 & 95 \
\hline \begin{array} { c }
\text { Upholstered } \
\text { furniture }
\end{array} & 2,000 & 15 \
\hline
\end{array}$$

Question

Refer to the table above. Using the four-firm concentration ratio, the upholstered furniture industry is best categorized as: $$\begin{array} { | c | c | c | } 
\hline \text { Industry } & \begin{array} { c } 
\text { Number of } \
\text { sellers }
\end{array} & \begin{array} { c } 
\text { \% of shipments accuunted far by the } 4 \
\text { larget comnanies }
\end{array} \
\hline \text { Tires } & 15 & 95 \
\hline \begin{array} { c } 
\text { Upholstered } \
\text { furniture }
\end{array} & 2,000 & 15 \
\hline
\end{array}$$

Quizplus · Accepted Answer

The upholstered furniture industry, with 2,000 sellers and only 15% of shipments accounted for by the four largest companies, is best categorized as monopolistically competitive. This is because the industry has many sellers and no small group of firms has a dominant market share.

Refer to the Table Above A)perfectly Competitive