The four-firm concentration ratio cannot have a value above 1.0.

Name: The four-firm concentration ratio cannot have a value above 1.0.
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Question

Quizplus · Accepted Answer

The four-firm concentration ratio (CR4) measures the total market share of the four largest firms in a particular industry. Since market share is expressed as a percentage, the maximum possible value for CR4 is 100%. Therefore, the ratio cannot have a value above 1.0, which represents 100%.

The Four-Firm Concentration Ratio Cannot Have a Value Above 1