You are told that the four-firm concentration ratio in an industry is 20. Based on this information you can conclude that
A) each of the top four firms has 20 percent of industry sales.
B) the four largest firms account for a combined 80 percent of the industry sales.
C) the four largest firms account for 20 percent of industry sales.
D) each of the four largest firms accounts for 5 percent of industry sales.

Question

Quizplus · Accepted Answer

The four-firm concentration ratio of 20 indicates that the four largest firms together account for 20 percent of the industry's total sales.

You Are Told That the Four-Firm Concentration Ratio in an Industry