Suppose an industry is made up of 25 firms, all with equal market share.The four-firm concentration ratio of this industry is
A)16%.
B)20%.
C)25%.
D)It cannot be determined from the information given.

Question

Quizplus · Accepted Answer

The four-firm concentration ratio is the percentage of market share held by the four largest firms in an industry. In this case, all 25 firms have equal market share, so the four largest firms each have 4/25 = 16% of the market share.

Suppose an Industry Is Made Up of 25 Firms, All