Suppose an industry is made up of 25 firms,all with equal market share.The four-firm concentration ratio of this industry

Question

Quizplus · Accepted Answer

The four-firm concentration ratio is the percentage of market share held by the four largest firms in an industry. In this case, the industry is made up of 25 firms, all with equal market share. Therefore, each firm has a market share of 1/25 = 4%. The four largest firms would therefore have a combined market share of 4 x 4 = 16%.

Suppose an Industry Is Made Up of 25 Firms,all with Equal