All categories

4 years ago

If there is a market with the below noted market segmentation, what would the four firm market concentration ratio be?

Business

2 answers:

sergey [27]4 years ago

7 0

Answer:

b. 90

Explanation:

The concentration ratio is a term in business that is measured as the total summation of the market share percentage carried by the largest specified number of companies in an industry. The concentration ratio varies between 0% to 100%, and an industry's concentration ratio is considered to demonstrates the extent of competition in the industry.

However, the four-firm concentration ratio is calculated by summing the market shares—that is, the percentage of total sales—of the four largest companies in the given market.

Hence, in this case, we have 35%, 30%, 15% and 10% as the top four largest market share. There by, summation equals => 35+30+15+10 = 90.

BlackZzzverrR [31]4 years ago

4 0

Answer:

The correct answer is:

90 (b.)

Explanation:

A concentration ratio is the ratio of the combined market shares percentage held by the largest specified number of firms, compared to the given market size. The concentration ratio ranges from 0% to 100%. If the concentration ratio of an industry ranges from 0% to 50%, that industry is said to be perfectly competitive if the top 5 firms have a concentration ratio of 60% or more, oligopoly is said to occur, and if the competition ratio of one company is 100% it shows monopoly.

In our example, the concentration of the largest four market segments are:

35%, 30%, 15% and 10%

Therefore, the four firm market concentration ratio = 35 + 30 + 15 + 10 = 90

You might be interested in

as foreign exchange activity has grown, a given degree of central bank intervention has become: a. more frequent. b. less effect

Lunna [17]

As foreign exchange activity grows, a given degree of central bank intervention becomes less effective. Hence, the correct option is (b) less effective.

Central banks manage currency by generating new currency, setting foreign currency reserves, and fixing interest rates. In regard to foreign exchange, the central bank intervention aims at stabilizing its currency in the foreign exchange market. The success of central bank interventions highly depends on how it manages and stabilizes its currency in the foreign exchange market.

If the central bank fails to maintain its stability in the foreign exchange market, it undermines the credibility of the central bank. The increase in foreign exchange activities means that the role of central bank intervention is less effective to stabilize its currency in the foreign exchange market.

You can learn more about role of central bank at

brainly.com/question/19336573

#SPJ4

6 0

1 year ago

A roofing company collects fees when jobs are complete. The work for one customer, whose job was bid at $3,900, has been complet

3241004551 [841]

Answer:

Debit Accounts Receivable, $3,900;

Credit Roofing Fees Revenue, $3,900

Explanation:

Here, no cash transaction was involved. Since the job has been completed but the customer has not been billed yet, this simply means it has to be debited with accounts receivable, which is recognised as current asset and recognised as revenue for the period, hence needs to be credited.

This means that accounts receivable has to be debited with the amount of $3,900 while roofing fees revenue has to be credited with the amount of $3,900

Considering the above, the adjusting entry the company would need to make on December 31, the calendar year-end would be:

Debit Accounts Receivable, $3,900;

Credit Roofing Fees Revenue, $3.900

3 0

3 years ago

On February 1, 2020, Nash's Contractors agreed to construct a building at a contract price of $5,700,000. Nash's estimated total

Romashka-Z-Leto [24]

Answer:

Nash's Contractor

Gross profit that should be recorded for 2020, 2021, and 2022:

Percentage -of completion Completed-contract

2020 $___667,500_____ 2020 $___0_____

2021 $____361,395____ 2021 $____0____

2022 $____121,105____ 2022 $____1,150,000____

Explanation:

a) Data and Calculations:

Contract price = $5,700,000

Estimated construction costs = $3,920,000

Project completion date = 2022

Costs and Billings:

2020 2021 2022

Total costs incurred to date $1,470,000 $2,580,000 $4,550,000

Estimated costs to complete 2,450,000 1,720,000 -0-

Customer billings to date 2,100,000 3,920,000 5,500,000

Collections to date 1,900,000 3,400,000 5,400,000

Percentage of completion:

2020:

Revenue = $2,137,500 ($1,470,000/$3,920,000 * $5,700,000)

Cost incurred = 1,470,000

Gross profit = $667,500

2021:

Revenue = $1,471,395 ($1,110,000/$4,300,000 * $5,700,000)

Cost incurred = 1,110,000

Gross profit = $361,395

2022:

Revenue = $2,091,105 ($5,700,000 - $2,137,500 - $1,471,395)

Cost incurred 1,970,000

Gross profit = $121,105

Completed contract

2022: Revenue = $5,700,000

Total costs = 4,550,000

Gross profit = $1,150,000

7 0

3 years ago

A country sells more goods and services to foreign countries than it buys from them. It has Select one: a. a trade surplus and p

GREYUIT [131]

Answer:

a trade surplus and positive net exports.

Explanation:

If a country sells more goods and services to foreign countries than it buys from them, it means the country's export is greater than its import. If export is greater than import, net exports (export- import ( would be postive.

Also, there would be a trade surplus.

A trade surplus is when the value of export is greater than imports.

I hope my answer helps you

5 0

3 years ago

Miracle Mobile Devices, Inc., is a private, for-profit corporation that

photoshop1234 [79]

Answer:

B. A close corporation

Explanation:

Based on the information provided within the question it can be said that Miracle Mobile Devices Inc. is a closed corporation. This term refers to company that is not a public corporation and does not surpass a predefined number of shareholders or stakeholders. Which both statements 2 and 4 defend this declaration.

8 0

3 years ago