Refer to the table shown. Using the four-firm concentration ratio, the tire industry is best categorized as: $$\begin{array} { | c | c | c | }
\hline \text { Industry } & \begin{array} { c }
\text { Number of } \
\text { sellers }
\end{array} & \begin{array} { c }
\text { \% of shipments accuunted far by the } 4 \
\text { larget comnanies }
\end{array} \
\hline \text { Tires } & 15 & 95 \
\hline \begin{array} { c }
\text { Upholstered } \
\text { furniture }
\end{array} & 2,000 & 15 \
\hline
\end{array}$$
A) perfectly competitive.
B) a pure monopoly.
C) monopolistically competitive.
D) oligopolistic.

Question

Refer to the table shown. Using the four-firm concentration ratio, the tire industry is best categorized as: $$\begin{array} { | c | c | c | } 
\hline \text { Industry } & \begin{array} { c } 
\text { Number of } \
\text { sellers }
\end{array} & \begin{array} { c } 
\text { \% of shipments accuunted far by the } 4 \
\text { larget comnanies }
\end{array} \
\hline \text { Tires } & 15 & 95 \
\hline \begin{array} { c } 
\text { Upholstered } \
\text { furniture }
\end{array} & 2,000 & 15 \
\hline
\end{array}$$
A) perfectly competitive.
B) a pure monopoly.
C) monopolistically competitive.
D) oligopolistic.

Quizplus · Accepted Answer

The tire industry has a high four-firm concentration ratio of 95%, indicating that it is dominated by a few large firms, which is characteristic of an oligopolistic market.

Refer to the Table Shown A) Perfectly Competitive