How is the percentage of market share defined?

The percentage of market share is defined as the proportion of total industry sales attributed to a business. This metric provides an insight into a company's competitiveness within its industry by indicating how much of the overall sales within that market are made by that particular business. Market share is usually expressed as a percentage, which helps in comparing a company’s performance to that of its competitors.

By analyzing market share, a business can assess its relative size and performance in relation to other players in the market. A higher market share percentage suggests a stronger position, potentially indicating greater brand recognition, customer loyalty, and economies of scale. It reflects the effectiveness of a company's marketing strategies, product quality, pricing, and overall market presence.

The other choices do not accurately define market share: total revenue reflects the income generated by a business, the share of profits deals with earnings rather than sales volume, and average sales price pertains to pricing strategy rather than market positioning. Each of these components plays a role in the overall business strategy but does not directly measure a company’s market presence in the way that market share does.