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The market concentration ratio for perfect competition is Low (Less than 40%).

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Is the concentration ratio in a monopolistically competitive industry likely to be higher than for a perfectly competitive industry?

Yes, the concentration ratio in a monopolistically competitive industry is typically higher than in a perfectly competitive industry. Monopolistic competition involves a few firms that have some degree of market power due to product differentiation, leading to a higher concentration of market share among those firms. In contrast, perfectly competitive industries consist of many firms, each with negligible market power, resulting in a lower concentration ratio.


What is the Four firm concentration ratio baby food industry?

The four-firm concentration ratio (CR4) in the baby food industry measures the market share held by the four largest companies in that sector. This ratio indicates the level of market concentration and competitiveness; a higher CR4 suggests that a few firms dominate the market. As of recent data, major players like Nestlé, Gerber (part of Nestlé), Beech-Nut, and Earth’s Best hold significant shares, resulting in a relatively high concentration ratio. This implies that while there are various brands, a small number of firms control a substantial portion of the market.


What type of industry with 20 firms has a concentration ratio of 30?

this would be considered to be a low Oligopoly market


What type of competition would most likely exist with a four-firm concentration ratio of 94?

Either an oligopoly (dominated by a few firms) or monopoly (if these 4 firms collude - control price and supply)


What is a key feature of an oligopoly?

An oligopoly is market form in which a market is dominated by a small number of sellers (oligopolists). The word is derived from the Greek for few sellers. Because there are few participants in this type of market, each oligopolist is aware of the actions of the others. Oligopolistic markets are characterised by interactivity. The decisions of one firm influence, and are influenced by, the decisions of other firms. Strategic planning by oligopolists always involves taking into account the likely responses of the other market participants. An oligopy is a form of economy. As a quantitative description of oligopoly, the four-firm concentration ratio is often utilized. This measure expresses the market share of the four largest firms in an industry as a percentage. Using this measure, an oligopoly is defined as a market in which the four-firm concentration ratio is above 40%. An example would be Indian mobile industry , with a four-firm concentration ratio of over 70% and the cold drink industry also in the U.S.A has a two firm concentration ratio of a staggering 85%. In an oligopoly, firms operate under imperfect competition, the demand curve is kinked to reflect inelasticity below market price and elasticity above market price, the product or service firms offer are differentiated and barriers to entry are strong. Following from the fierce price competitiveness created by this sticky-upward demand curve, firms utilize non-price competition in order to accrue greater revenue and market share. In industrialized countries oligopolies are found in many sectors of the economy, such as cars, consumer goods, and steel production. Unprecedented levels of competition, fueled by increasing globalisation, have resulted in the emergence of oligopsony in many market sectors, such as the aerospace industry. There are now only a small number of manufacturers of civil passenger aircraft. A further instance arises in a heavily regulated market such as wireless communications. Typically the state will license only two or three providers of cellular phone services. Oligopolistic competition can give rise to a wide range of different outcomes. In some situations, the firms may collude to raise prices and restrict production in the same way as a monopoly. Where there is a formal agreement for such collusion, this is known as a cartel. Firms often collude in an attempt to stabilise unstable markets, so as to reduce the risks inherent in these markets for investment and product development. There are legal restrictions on such collusion in most countries. There does not have to be a formal agreement for collusion to take place (although for the act to be illegal there must be a real communication between companies) - for example, in some industries, there may be an acknowledged market leader which informally sets prices to which other producers respond, known as price leadership.

Related Questions

What is the concentration ratio of PepsiCo?

Oh, dude, the concentration ratio of PepsiCo is like the percentage of market share they have compared to their competitors. It's calculated by taking the sales of the top firms in the industry and dividing it by the total sales in the market. So, like, if PepsiCo dominates the soda game, their concentration ratio would be pretty high. But hey, who really cares about ratios when you've got a cold Pepsi in hand, am I right?


What type of industry with 20 firms has a concentration ratio of 30?

this would be considered to be a low Oligopoly market


What about formula for market debt ratio and book devt ratio and where is market value and book value?

Market debt ratio= TL / (TL - Equity) Note : equity with market value .


Pythagoras discovered the ratio for creating the interval of a perfect octave was?

He discovered the ratio of a perfect octave is 2:1.


What type of competition would most likely exist with a four-firm concentration ratio of 94?

Either an oligopoly (dominated by a few firms) or monopoly (if these 4 firms collude - control price and supply)


The ratio of the concentration of two species after processing to that before processing is called?

Concentration factor


What is an example of a market prospects ratio?

Price earnings ratio.


Ratio of the concentration of the dissociated to the undissociated form?

The ratio of the concentration of the dissociated form to the undissociated form in a reversible reaction is represented by the equilibrium constant, K. It is calculated by dividing the concentration of products by the concentration of reactants raised to the power of their respective stoichiometric coefficients. This ratio defines the extent of the reaction at equilibrium.


What is a ratio of a solute to a solvent is?

This is the concentration of the solute in the solution.


What is the ratio of solute to solvent called?

The ratio of solute to solvent is called concentration. It can be expressed in various ways, such as molarity, molality, or mass percent.


What is the ratio of bids to asks in the current market conditions?

The ratio of bids to asks in the current market conditions is 2:1.


What is perfect height ratio of couples?

1.09