-In Exhibit L-2, the table shows the market shares of five firms that operate in three different industries. The four-firm concentration ratio in Industry III is equal to
A) 5 percent
B) 15 percent
C) 60 percent
D) 100 percent
E) 95 percent

Question

-In Exhibit L-2, the table shows the market shares of five firms that operate in three different industries. The four-firm concentration ratio in Industry III is equal to
A) 5 percent 
B) 15 percent 
C) 60 percent 
D) 100 percent 
E) 95 percent

Quizplus · Accepted Answer

The four-firm concentration ratio is the sum of the market shares of the four largest firms in the industry. In Industry III, if the four largest firms have a combined market share of 95 percent, then the four-firm concentration ratio is 95 percent.

-In Exhibit L-2, the Table Shows the Market Shares of Five