-The table above lists the market shares of the twenty makers of personal computers. The four-firm concentration ratio tells us that
A) the four largest firms have 20 percent of the market.
B) there are no barriers to entry in this market.
C) the firms sell differentiated products.
D) all firms sell identical products.

Question

-The table above lists the market shares of the twenty makers of personal computers. The four-firm concentration ratio tells us that
A) the four largest firms have 20 percent of the market. 
B) there are no barriers to entry in this market. 
C) the firms sell differentiated products. 
D) all firms sell identical products.

Quizplus · Accepted Answer

The four-firm concentration ratio measures the total market share of the four largest firms in an industry. If the four largest firms have 20 percent of the market, it indicates a low concentration ratio, suggesting a competitive market.

-The Table Above Lists the Market Shares of the Twenty