The following table shows the total dollar amount of sales in 2012 for the four largest firms in the adhesive manufacturing industry.Total industry sales in 2012 were $782,000.Use this table to answer the following questions:

-If Glues R Us split into two separate companies,the concentration ratio would ________ and the market price of adhesive would likely ________.
A) increase; fall
B) increase; rise
C) decrease; not change
D) decrease; fall
E) decrease; rise

Question

The following table shows the total dollar amount of sales in 2012 for the four largest firms in the adhesive manufacturing industry.Total industry sales in 2012 were $782,000.Use this table to answer the following questions:
 
-If Glues R Us split into two separate companies,the concentration ratio would ________ and the market price of adhesive would likely ________.
A) increase; fall 
B) increase; rise 
C) decrease; not change 
D) decrease; fall 
E) decrease; rise

Quizplus · Accepted Answer

The Answer is D

The Following Table Shows the Total Dollar Amount of Sales