The concentration ratio is defined as the:
A) percentage of industry output produced by a specific firm.
B) percentage of total industry output produced by the top firms.
C) squared value of the market shares of all the firms in an industry.
D) squared value of the market shares of the largest four firms in the industry.

Question

Quizplus · Accepted Answer

The concentration ratio measures the percentage of total industry output produced by the top firms, typically the largest four or eight firms in the industry.

The Concentration Ratio Is Defined as The