Suppose that total sales in an industry in a particular year are $600 million and sales by the top four sellers are $200 million,$150 million,$100 million and $50 million,respectively.We can conclude that:
A)price leadership exists in the industry
B)the concentration ratio is less than 80 percent
C)the industry is an oligopoly
D)the industry is a monopoly
E)the industry is perfectly competitive

Question

Quizplus · Accepted Answer

The fact that the top four sellers generate a significant portion of the total sales suggests that the industry is dominated by a small number of firms, making it an oligopoly. Options A, B, D, and E can be ruled out as they do not fit the given information about the industry.

Suppose That Total Sales in an Industry in a Particular