Suppose the market for gasoline retailing (gas stations)in an island economy has 12 firms.The two largest firms each account for 30% of sales,the third accounts for 15%,the fourth for 7%,the fifth for 4% and the remaining firms for 2% each.What is the four- firm concentration ratio?

Question

Quizplus · Accepted Answer

The four-firm concentration ratio is the total market share of the four largest firms. In this case, the four largest firms account for 30% + 30% + 15% + 7% = 82% of the market share. Therefore, the four-firm concentration ratio is 82%.

Suppose the Market for Gasoline Retailing (Gas Stations)in an Island