In April 2010 the market share of the top six U.S.makers of cars and light trucks were General Motors (18.7%),Ford (17.0%),Toyota (16.0%),Honda (11.6%),Chrysler (9.7%),Nissan (6.5%)and other companies (21.5%).What would the concentration ratio be for the motor vehicle industry?

Question

Quizplus · Accepted Answer

The concentration ratio is calculated by summing the market shares of the top firms in the industry. In this case, the top six firms have a combined market share of 79.5% (18.7% + 17.0% + 16.0% + 11.6% + 9.7% + 6.5%), which means that the concentration ratio is 63.3% (79.5% rounded to the nearest tenth). Therefore, the best choice is B.

In April 2010 the Market Share of the Top Six