An industry with which of the following four-firm concentration ratios would tend to have the greatest amount of R&D expenditures as a percentage of sales?
A) 0
B) 10
C) 50
D) 100

Question

Quizplus · Accepted Answer

Industries with moderate concentration ratios, like 50, often have enough competition to drive innovation but also enough market power to fund R&D, leading to higher R&D expenditures as a percentage of sales.

An Industry with Which of the Following Four-Firm Concentration Ratios