The following table shows the four-firm concentration ratios for five separate industries.Use this table to answer the following questions:

-In which industry do the four largest firms collectively have the least market power?
A) beer brewing
B) breakfast cereals
C) chocolate confections
D) adhesive manufacturing
E) plastics product manufacturing

Question

The following table shows the four-firm concentration ratios for five separate industries.Use this table to answer the following questions:
 
-In which industry do the four largest firms collectively have the least market power?
A) beer brewing 
B) breakfast cereals 
C) chocolate confections 
D) adhesive manufacturing 
E) plastics product manufacturing

Quizplus · Accepted Answer

In industries where the market is more fragmented and there are a large number of firms, no single firm or a small group of firms tends to have significant market power. The plastics product manufacturing industry is known for its wide range of products and numerous competitors, making it less likely for the four largest firms to dominate the market compared to more concentrated industries like beer brewing, breakfast cereals, chocolate confections, and adhesive manufacturing.

The Following Table Shows the Four-Firm Concentration Ratios for Five