Suppose an industry is made up of four firms, all with equal sales. The four-firm concentration ratio of that industry is
A)0.125.
B)0.50.
C)1.00.
D)This cannot be determined without more information.

Question

Quizplus · Accepted Answer

The four-firm concentration ratio is the sum of the market shares of the four largest firms in the industry. Since all four firms have equal sales, they collectively make up 100% of the market, resulting in a concentration ratio of 1.00.

Suppose an Industry Is Made Up of Four Firms, All