The following table shows the total output produced by the top six firms as well as the total...

Question:

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 J Industry K Industry L Industry M
1 14,288 7,878 1,554 22,987
2 12,128 7,242 1,486 21,444
3 11,192 5,321 1,294 18,787
4 3,245 4,900 1,287 16,454
5 2,442 4,526 911 12,890
6 1,004 3,800 745 10,045
Total 55,050 70,250 7,340 198,400

What is the concentration ratio for Industry J?

a. about 14%

b. about 48%

c. about 74%

d. about 80%

Concentration Ratio:

The concentration ratio is the ratio of top organizations in the concerned industry. Concentration ratio is used to measure competitiveness and market share in the industry. It can also be calculated through capacity, output, and employment.

Answer and Explanation:

The correct option is D: About 80%

Explanation:

Calculation of concentration ratio is:

{eq}\begin{align*} {\rm{Concentration}}\;{\rm{Ratio}}\; &=...

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Industry Analysis for Business Plans

from Business Analysis Training

Chapter 4 / Lesson 6
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