A concentration ratio refers to the
A) ranking of firms by profitability
B) percentage of sales accounted for by the leading firms in an industry
C) percentage of sales accounted for by the largest firm in an industry
D) ability of a firm to control market price
E) percentage of profit accounted for by the largest firm in an industry

Question

Quizplus · Accepted Answer

A concentration ratio is a measure of the total output produced in an industry by a given number of firms. Specifically, it refers to the percentage of market share held by the largest firms within an industry, indicating the level of competition and market control.

A Concentration Ratio Refers to the