Asked by
Terry Newnum
on Nov 26, 2024
Verified
Industry Y is dominated by five large firms that hold market shares of 27, 23, 16, 16, and 18 percent. The four-firm concentration ratio for this industry is
A) 82 percent.
B) 84 percent.
C) 88 percent.
D) 92 percent.
Four-Firm Concentration Ratio
An economic indicator that measures the combined market share of the top four firms in an industry, used to assess the level of competition.
Market Shares
The proportion of total market sales within an industry that is held by a specific company.
- Comprehend the principle and computation of the four-firm concentration ratio and its consequences for the configuration of the market.
Verified Answer
BS
Learning Objectives
- Comprehend the principle and computation of the four-firm concentration ratio and its consequences for the configuration of the market.