We would expect the four-firm concentration ratio of the restaurant industry in a large metropolitan area to be about 0.80, or 80 percent, and higher.

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The restaurant industry, especially in large metropolitan areas, is highly competitive and fragmented, with many small and independent businesses. Therefore, the four-firm concentration ratio, which measures the market share of the four largest firms in an industry, is expected to be much lower than 80 percent.

We Would Expect the Four-Firm Concentration Ratio of the Restaurant