Table 16-2 The following table shows the total output produced by the top six fi
ID: 1090802 • 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. Which industry is the least competitive?
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 of Industry = Total outpiut/No of firms
A = 45350/6 = 7558.33
B = 70900/6 = 11816.67
C = 30125/6 = 5020.83
D = 120000/6 = 20000
The least competitive industry is D since it has the Highest Concentration Ratio
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