The accompanying 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 questions. $\begin{array}{lr}\text { Firm Name }&\text { Dollar Amount of Sales in } 2012\
\text { Ghes R Us, Inc. } & \$ 362,000 \
\text { Ghe Down, Inc. } & \$ 105,000 \
\text { Sticky, Inc. } & \$ 85,000 \
\text { All Ghes, Inc. } & \$ 76,000 \
\text { All other firms in industry combined } & \$ 154,000
\end{array}$
-What is the four-firm concentration ratio in this industry?

Question

The accompanying 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  questions. $\begin{array}{lr}\text { Firm Name }&\text { Dollar Amount of Sales in } 2012\
\text { Ghes R Us, Inc. } & \$ 362,000 \
\text { Ghe Down, Inc. } & \$ 105,000 \
\text { Sticky, Inc. } & \$ 85,000 \
\text { All Ghes, Inc. } & \$ 76,000 \
\text { All other firms in industry combined } & \$ 154,000
\end{array}$
-What is the four-firm concentration ratio in this industry?

Quizplus · Accepted Answer

The four-firm concentration ratio is calculated by adding the sales of the four largest firms and dividing by the total industry sales. Here, it is $(362,000 + 105,000 + 85,000 + 76,000) / 782,000 = 80%$.

The Accompanying Table Shows the Total Dollar Amount of Sales