Table 16-2
The following table shows the total output produced by the top six firms as well as the total industry output for each industry.

-Refer to Table 16-2.What is the concentration ratio for Industry A?
A) about 71%
B) about 81%
C) about 88%
D) 100%

Question

Table 16-2
The following table shows the total output produced by the top six firms as well as the total industry output for each industry.
 
-Refer to Table 16-2.What is the concentration ratio for Industry A?
A) about 71% 
B) about 81% 
C) about 88% 
D) 100%

Quizplus · Accepted Answer

To calculate the concentration ratio, we add the market share percentages of the top 6 firms. For Industry A, the market share percentages are: 30% + 15% + 10% + 8% + 7% + 6% = 76%. Therefore, the concentration ratio for Industry A is about 81%.

Table 16-2 the Following Table Shows the Total Output Produced by the by the Top