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.Which industry has the highest concentration ratio?
A) Industry A
B) Industry B
C) Industry C
D) Industry D

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.Which industry has the highest concentration ratio?
A) Industry A 
B) Industry B 
C) Industry C 
D) Industry D

Quizplus · Accepted Answer

Industry A has the highest concentration ratio, which is calculated by adding the market shares of the top six firms in the industry. In this case, the top six firms in Industry A produce a total output of 450, which is 90% of the total industry output of 500. Therefore, the concentration ratio for Industry A is 90%. The concentration ratios for Industries B, C, and D are 80%, 70%, and 60%, respectively, indicating lower levels of market concentration.

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