A concentration ratio is the ratio of
A) market share to the number of firms in an industry
B) total sales to the number of firms in an industry
C) large firms to small firms in an industry
D) total sales of the leading firms to total sales in the industry
E) total profits of the leading firms to total profits in the 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. The most common form of the concentration ratio is the ratio of the total sales of the leading firms (usually the top 3, 4, or 5 firms) to the total sales in the industry, which is what option D describes.

A Concentration Ratio Is the Ratio of