The share of industry output sold by the top four steel producers in the country are 19 percent, 15 percent, 12 percent, and 9 percent, respectively.The four-firm concentration ratio for the steel industry is

Question

Quizplus · Accepted Answer

To calculate the four-firm concentration ratio, we sum up the market share of the top four steel producers: 19% + 15% + 12% + 9% = 55%.

Then, we divide the total market share of the top four firms by the total market share of the industry:

55% / 100% = 0.55.

Therefore, the four-firm concentration ratio for the steel industry is 0.55.

The Share of Industry Output Sold by the Top Four