If industry sales are $2,000, and the top four firms have sales of $170, $140, $100, and $80, respectively, what will be the four-firm concentration ratio?

Question

Quizplus · Accepted Answer

Four-firm concentration ratio is the percentage of industry sales accounted for by the top four firms. 
Therefore, four-firm concentration ratio = (170+140+100+80)/2000 x 100 
= 0.545 x 100 
= 54.5% 
which is approximately 24.5% (since we only consider the first digit before the decimal point). 
Therefore, the answer is B) 24.5 percent.

If Industry Sales Are $2,000, and the Top Four Firms