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Question
The following table shows the dollar amount of sales in 2016 for the four largest firms in the above-ground pool industry. Total industry sales in 2016 were $467,000. Use this table to answer the following questions:
| Firm Name | Sales in 2016 |
| Clear Water Island | $112,000 |
| Poolside Paradise | 47,000 |
| Nautical Waters | 19,000 |
| Sunny Plastics | 14,000 |
| All other firms in industry combined | 275,000 |
If Clear Water Island acquired Poolside Paradise, the concentration ratio would ________ and the market price of pools would likely ________.
a. increase; fall
b. increase; rise
c. decrease; not change
d. decrease; fall
e. decrease; rise
Answer
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