If the four-firm concentration ratio for an industry is 84 percent, then
A) each of the firms account for 21 percent of total sales.
B) the four largest firms in the industry account for 16 percent of the total sales.
C) the four largest firms in the industry account for 84 percent of the total sales.
D) the remaining firms in the industry accounts for 84 percent of the total sales.

Question

Quizplus · Accepted Answer

The four-firm concentration ratio measures the combined market share of the four largest firms in an industry. In this case, the ratio is 84 percent, which means that the four largest firms in the industry account for 84 percent of the total sales.

If the Four-Firm Concentration Ratio for an Industry Is 84