If the four-firm concentration ratio for industry X is 60,
A)the four largest firms account for 60 percent of total sales.
B)each of the four largest firms accounts for 15 percent of total sales.
C)the four largest firms account for 60 percent of total advertising expenditures.
D)the industry is monopolistically competitive, but on the threshold of being an oligopoly.

Question

Quizplus · Accepted Answer

The four-firm concentration ratio measures the total market share of the four largest firms in an industry. If it is 60, it means these firms account for 60 percent of total sales in the industry.

If the Four-Firm Concentration Ratio for Industry X Is 60