A concentration ratio indicates the
A)number of firms in an industry.
B)number of large firms in an industry compared to the number of large firms in another related industry.
C)percentage of total sales accounted for by the (for example) four largest firms.
D)percentage of sellers in an industry relative to the number of buyers.
E)percentage of sellers in an industry protected by barriers to entry relative to the number of sellers that wish to enter.

Question

Quizplus · Accepted Answer

A concentration ratio is a measure of the total output produced in an industry by a given number of firms. Specifically, it often refers to the percentage of market share held by the largest firms (for example, the four largest firms) in the industry, indicating the level of market concentration.

A Concentration Ratio Indicates the