The four-firm concentration ratio measures the share of the largest four firms in total industry
A)profit.
B)sales.
C)cost.
D)capital.
E)loss.

Question

Quizplus · Accepted Answer

The four-firm concentration ratio is a measure of market concentration in which the total sales of the four largest firms in an industry are expressed as a percentage of the industry's total sales. It is used to determine the degree of competition within an industry and is typically higher in industries that are oligopolistic or monopolistic. Therefore, the correct answer is B as it measures the share of the largest four firms in the industry's total sales.

The Four-Firm Concentration Ratio Measures the Share of the Largest