If the top four firms account for $85 billion in sales and total industry sales are $250 billion, it follows that the four-firm concentration ratio is
A)0.34.
B)0.66.
C)1.34.
D)1.66.

Question

Quizplus · Accepted Answer

The four-firm concentration ratio is calculated by dividing the total sales of the top four firms by the total industry sales. So, $85 billion / $250 billion = 0.34.

If the Top Four Firms Account for $85 Billion in Sales