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What is the market concentration ratio of a perfect competition?
Wiki User
∙ 12y ago
The market concentration ratio for perfect competition is Low (Less than 40%).
Wiki User
∙ 12y ago
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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.
Industry structure is often measured by computing the Four-Firm Concentration Ratio. Suppose you have an industry with 20 firms and the CR is 30. How would you describe this industry?
Industry structure is often measured by computing the Four-Firm Concentration Ratio. Suppose you have an industry with 20 firms and the CR is 30. How would you describe this industry?
What is the meaning of a four-firm concentration ratio of 50 percent?
A four-firm concentration ration of 50 percent means that the top four firms of a particular industry produce 50% of the total output for the entire industry. The higher the concentration ration, the closer the industry becomes to an oligopoly or a monopoly.
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.
What is a ratio of a solute to a solvent is?
This is the concentration of the solute in the solution.
What is perfect height ratio of couples?
1.09
What is the ratio of solute to solvent called?
It may be called concentration.
What is market to book ratio used for?
what is market to book ratios used for?
How do prepair normal solution of any chemical?
Normal concentration is the ratio between molar concentration and an equivalence factor.
What is Marketed Surplus Ratio of commodities?
The quantity of product(farm product) that is keep by the farmer and they do not sell this in the market is called market surplus ratio.
