Industry Y is dominated by five large firms that hold market shares of 27, 23, 16, 16, and 18 percent. The four-firm concentration ratio for this industry is

Name: Industry Y is dominated by five large firms that hold market shares of 27, 23, 16, 16, and 18 percent. The four-firm concentration ratio for this industry is
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Question

Quizplus · Accepted Answer

The four-firm concentration ratio is calculated by adding up the market shares of the largest four firms in the industry. Here, that would be 27% + 23% + 16% + 18% = 84%.

Industry Y Is Dominated by Five Large Firms That Hold