Typically, economists expect oligopolistic behavior on the part of the firms when the four-firm concentration ratio is ______ or higher.
A) 10 percent
B) 25 percent
C) 40 percent
D) 60 percent
E) 90 percent

Question

Quizplus · Accepted Answer

The four-firm concentration ratio measures the total market share of the four largest firms in an industry. A ratio of 40 percent or higher indicates a high level of market concentration, suggesting oligopolistic behavior where a few firms have significant market power.

Typically, Economists Expect Oligopolistic Behavior on the Part of the Firms