Question

Levon sells cartoon balloons in town. His family business thrives. Levon's balloons are priced at $8.00 each and sells 266 balloons each month. His largest competitor, Paul, sells 613 balloons each month at a price of $3.00 each. Levon estimates the total balloon market in town to be 2000 per month at an average price of $6.00 per balloon.
1. What is Levon's unit market share?

Answer 1

Answer:

The correct answer is: 13,3%.

Explanation:

A company's market share is the percentage of the total market for its products that it controls. Companies that increase their market share enjoy a competitive advantage. They receive better prices from suppliers and they are able to produce goods faster.

Thus, Levon's family business market share is:

• Market share = Units sold by one company / Total units sold in the market
• Market share = 266 / 2000
• Market share = 13,3%