Asked by
Mitchell Massey
on Nov 26, 2024Verified
The four-firm concentration ratio for an industry measures the
A) profitability of the four largest firms in the industry.
B) extent to which the four largest firms dominate the sales of a good.
C) percentage of the industry's workforce employed by the four largest firms.
D) degree of product variation in the industry.
Four-Firm Concentration Ratio
A metric used to assess the degree of market concentration, represented by the combined market share of the four largest firms in an industry.
Profitability
The extent to which an enterprise or operation generates income or economic benefits.
Largest Firms
The biggest companies within a particular market or industry based on criteria such as revenue, employees, or market capitalization.
- Absorb the understanding of concentration ratios and their outcomes.
Verified Answer
JJ
Learning Objectives
- Absorb the understanding of concentration ratios and their outcomes.