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    Industry Factors

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    Industry A has 20 firms and a Concentration Ratio (CR) of 30%

    * What is the name for this type of industry?
    *
    Describe some of this industry's characteristics.
    *
    If you were in this industry and there was an increased demand for the product that pushed up the price of goods, what long-run adjustments would you expect?
    *
    What does your anticipated adjustment process imply about the CR for the industry?

    Industry B has 20 firms and a Concentration Ratio (CR) of 80%.

    *
    What is the name for this type of industry?
    *
    Describe some of this industry's characteristics.
    *
    What are some reasons why this industry has a high CR while Industry A had a low CR?
    *
    Is it possible for smaller firms to thrive and profit in Industry B? Why or why not?

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    https://brainmass.com/economics/general-equilibrium/industry-factors-315133

    Solution Summary

    The anticipated adjustment process for this case is assessed.

    $2.19

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