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The output in chairs per month for four firms is: 200 for firm A 300 for firm B 275 for firm C 320 for firm D The total output of the chair industry is 2,000 chairs per month. If firms A, B, C, and D are the four largest firms in the industry, calculate the four-firm concentration ratio for the chair industry by finding out what percentage of the total output the four firms are responsible for. Round your answer to the nearest whole percent.

User ManfredP
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1 Answer

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Answer: 55% to the nearest whole percent

Explanation:

The output in chairs per month for four firms is:

200 for firm A

300 for firm B

275 for firm C

320 for firm D

Total output of firm A, B, C and D is

200+300+275+320 = 1095

If firms A, B, C, and D are the four largest firms in the industry and the

total output of the chair industry is 2,000 chairs per month,

the four-firm concentration ratio for the chair industry can be calculated by finding out what percentage of the total output the four firms are responsible for.

Total output of the four firms = 1095

Total output of chair industry per month = 2000.

The four-firm concentration ratio for the chair industry =

1095/2000 × 100

=54.75%

= 55% to the nearest whole percent

User Ford Guo
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