Suppose the market share of the ﬁve largest ﬁrms in an industry is equal to 31%, 17%, 8%, 5% and 1% respectively. What is the ﬁve-ﬁrm concentration ratio for the industry?

Question

Quizplus · Accepted Answer

The five-firm concentration ratio is the sum of the market shares of the five largest firms in an industry. In this case, the five-firm concentration ratio is 31% + 17% + 8% + 5% + 1% = 62%.

Suppose the Market Share of the ﬁVe Largest ﬁRms in an Industry