If the four-firm concentration ratio for industry X is 80,this means that:

Question

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The four-firm concentration ratio measures the percentage of total sales accounted for by the four largest firms in an industry. So, if it is 80, it means that those four firms account for 80% of total sales. Option B is incorrect because it implies that each one of the four largest firms has a market share of exactly 20%, which is not necessarily true. Option C is incorrect because it implies that the four largest firms combined only account for 20% of total sales, which contradicts the given concentration ratio. Option D is not relevant to the given information. Option E is unlikely, as perfect competition implies a large number of small firms with no dominant players.

If the Four-Firm Concentration Ratio for Industry X Is 80,this