Consider an industry with 6 firms.Firm A has sales of $6 mil. ,firm B has sales of $12 mil. ,firm C has sales of $30 mil. ,firm D has sales of $50 mil.and firm E has sales of $2 mil.The four firm concentration ration in this industry is

Question

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The four-firm concentration ratio is the percentage of total industry sales accounted for by the four largest firms. In this case, the four largest firms are firms C, D, E, and F, with sales of $30 million, $50 million, $2 million, and $6 million, respectively. Total industry sales are $6 million + $12 million + $30 million + $50 million + $2 million = $100 million. Therefore, the four-firm concentration ratio is ($30 million + $50 million + $2 million + $6 million) / $100 million = 98%.

Consider an Industry with 6 Firms