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Sati [7]
3 years ago
15

Suppose the market for smoothies is supplied by 11 competitors. Their respective market shares are 40%, 20%, 10%, 5%, 5%, 5%, 4%

, 4%, 4%, 2%, and 1%. Compute C4 for the smoothie market. Your answer should be a decimal between 0 and 1, rounded to the second decimal place (e.g. 0.50).
Business
1 answer:
S_A_V [24]3 years ago
6 0

Answer:

0.75

Explanation:

Four firm concentration: Share of four firms / Total market share

Four firm share: 40 + 20+10+5

= 75

CR = 75/100

= 0.75 or 75 %

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Management is considering using a new component that would increase the unit variable cost by $50. Since the new component would
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Because fixed costs will not change, the overall effect on the company's monthly net operating income will be equal to the contribution margin of the product once the new component is added.

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The contribution margin is equal to: Revenue - Variable Costs.

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