Explore BrainMass

Explore BrainMass

    Description of an industry with 20 firms and the CR is 20.

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    Suppose you have an industry with 20 firms and the CR is 20. How would you describe this industry? Suppose the demand for the product rises and pushes up the price for the good. What long-run adjustments would you expect following this change in demand? What does your adjustment process imply about the CR for the industry?

    © BrainMass Inc. brainmass.com October 9, 2019, 10:47 pm ad1c9bdddf

    Solution Preview

    The four-firm concentration ratio, or CR, represents the market share, as a percentage, of the four largest firms in the industry. A CR of less than 40% represents monopolistic competition. Thus, ...

    Solution Summary

    Changes in an industry and its concentration ratio