Assume the four-firm concentration ratio in industry X is 75 percent and that the firms in the industry produce a differentiated product.Industry X most likely would be characterized as:

Question

Quizplus · Accepted Answer

A four-firm concentration ratio of 75 percent indicates that there are only a few dominant firms in the industry, which suggests that Industry X is an oligopoly. The fact that the firms produce a differentiated product further supports this conclusion.

Assume the Four-Firm Concentration Ratio in Industry X Is 75