An industry is comprised of 20 firms,each with an equal market share.What is the four-firm concentration ratio of this industry?

Name: An industry is comprised of 20 firms,each with an equal market share.What is the four-firm concentration ratio of this industry?
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Quizplus · Accepted Answer

Since each of the 20 firms has an equal market share, each firm controls 1/20 or 5% of the market. The four-firm concentration ratio is the sum of the market shares of the four largest firms, which in this case is 4 * 5% = 20% or 0.2.

An Industry Is Comprised of 20 Firms,each with an Equal