A concentration ratio measures the
A) Proportion of industry output produced by all firms.
B) Proportion of industry output produced by the largest firms.
C) Dollar value of total industry output produced by all firms.
D) Dollar value of total industry output produced by the largest firms.

Question

Quizplus · Accepted Answer

A concentration ratio measures the proportion of industry output produced by the largest firms. It offers insight into the market structure by demonstrating the level of market power held by the top firms in the industry. It is calculated by adding up the market share percentages of the largest firms in the industry.

A Concentration Ratio Measures the