If an industry is made up of five identical firms, the four-firm concentration ratio is

Name: If an industry is made up of five identical firms, the four-firm concentration ratio is
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Question

Quizplus · Accepted Answer

The four-firm concentration ratio measures the total market share of the four largest firms in an industry. Since the industry is made up of five identical firms, each firm would have a market share of 20%. Therefore, the total market share of the four largest firms would be 80%, making C the correct answer.

If an Industry Is Made Up of Five Identical Firms