Suppose that total sales in an industry in a particular year are $600 million and sales by the top four sellers are $200 million, $150 million, $100 million, and $50 million, respectively. We can conclude that

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The concentration ratio is calculated as the sum of the market shares of the top four firms, which in this case is (200 + 150 + 100 + 50) / 600 = 66.67%. Since this is more than 80%, we can conclude that the concentration ratio is more than 80 percent.

Suppose That Total Sales in an Industry in a Particular