A four-firm concentration ratio of 0.9 indicates that the four largest firms in the industry control 90% of the industry's sales.

Question

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A four-firm concentration ratio (CR4) is a measure of market concentration that calculates the combined market share of the four largest firms in an industry. A CR4 of 0.9 would mean that these four firms control 90% of the industry's sales, indicating a high level of market concentration and potentially giving these firms significant market power.

A Four-Firm Concentration Ratio of 0