If the four-firm concentration ratio for the market for pizza is 28 per cent, then this industry is best characterised as
A) an oligopoly.
B) perfect competition.
C) monopolistic competition.
D) a monopoly.
E) oligopolistic competition.

Question

Quizplus · Accepted Answer

The four-firm concentration ratio of 28 per cent indicates a market where no small number of firms has a large market share, suggesting a high level of competition with differentiated products, which is characteristic of monopolistic competition.

If the Four-Firm Concentration Ratio for the Market for Pizza