Suppose the four-firm concentration ratio for an industry is 10 percent. This value indicates ________. If the four-firm concentration ratio for another industry is 95 percent, this value indicates ________.
A) the industry is competitive; the industry has very little competition
B) the industry has very little competition; the industry is very competitive
C) the industry has firms worldwide; the industry is concentrated in one country
D) the HHI will be high; the HHI will be low

Question

Quizplus · Accepted Answer

A four-firm concentration ratio of 10 percent suggests a competitive industry with many firms, while a ratio of 95 percent indicates an industry dominated by a few firms, implying very little competition.

Suppose the Four-Firm Concentration Ratio for an Industry Is 10