Suppose that the demand in a particular industry is given by Q^d = 100 - 2P.When the market price in the industry is $10 per unit,total demand in the industry is __ __.Furthermore,assume that each of the four largest firms in the industry sell 15 units.Based on this information,the four-firm concentration ratio is ____ .

Question

Quizplus · Accepted Answer

When the market price is $10 per unit, the total demand in the industry can be calculated by substituting P = 10 into the demand equation: Q = Q^d = 100 - 2(10) = 80 units Each of the four largest firms in the industry sells 15 units, so their total market share is: (4 firms) x (15 units per firm) / (80 total units) = 0.75 Therefore, the four-firm concentration ratio is 0.75, and the best choice is C.

Suppose That the Demand in a Particular Industry Is Given