In a perfectly competitive industry the four-firm concentration ratio is close to zero.

Name: In a perfectly competitive industry the four-firm concentration ratio is close to zero.
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Question

Quizplus · Accepted Answer

In a perfectly competitive industry, there are many firms competing and no single firm has a dominant market share. Therefore, the four-firm concentration ratio, which measures the percentage of market share held by the four largest firms in an industry, would be close to zero. So, the statement is true.

In a Perfectly Competitive Industry the Four-Firm Concentration Ratio Is