If an industry evolves from monopolistic competition to oligopoly, we would expect

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The four-firm concentration ratio measures the total percentage share of sales in an industry held by the top four firms. If an industry evolves from monopolistic competition to oligopoly, it means fewer firms are dominating the market. Therefore, we expect the four-firm concentration ratio to increase, signaling a higher level of market power among the top firms. Additionally, as the oligopoly firms become more dominant, we expect barriers to entry to strengthen, making it more difficult for new firms to enter the market.

If an Industry Evolves from Monopolistic Competition to Oligopoly, We