Table 16-2 The following table shows the total output produced by the top six fi
ID: 1090800 • Letter: T
Question
Table 16-2
The following table shows the total output produced by the top six firms as well as the total industry output for each industry.
Firm
Industry A
Industry B
Industry C
Industry D
1
13,250
8,750
1,750
15,000
2
10,975
7,500
1,725
14,000
3
8,175
6,400
1,700
13,000
4
4,275
5,000
1,675
12,000
5
1,250
4,250
1,650
11,000
6
875
4,000
1,625
10,000
Total
45,350
70,900
30,125
120,000
Refer to Table 16-2. What is the concentration ratio for Industry C?
Firm
Industry A
Industry B
Industry C
Industry D
1
13,250
8,750
1,750
15,000
2
10,975
7,500
1,725
14,000
3
8,175
6,400
1,700
13,000
4
4,275
5,000
1,675
12,000
5
1,250
4,250
1,650
11,000
6
875
4,000
1,625
10,000
Total
45,350
70,900
30,125
120,000
Explanation / Answer
Concentration ratio for Industry C = Total output of four largest firms of Industry C / Total combined output of Industry C
= (1750 + 1725 + 1700 + 1675) / 30125
= 6850 / 30125
= 0.2274 or 22.74% (Answer)
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