If the four-firm concentration ratio for industry X is 60,

A) the four largest firms account for 60 percent of total sales.
B) each of the four largest firms accounts for 15 percent of total sales.
C) the four largest firms account for 60 percent of total advertising expenditures.
D) the industry is monopolistically competitive, but on the threshold of being an oligopoly.

Four-Firm Concentration Ratio

A measure of market concentration that calculates the combined market share of the four largest firms in an industry.

Total Sales

The aggregate revenue a business or sector generates from selling goods or services over a specific period.

Advertising Expenditures

The amount of money spent on promoting products, services or brands through various media channels.