The measurement of industry concentration which calculates the percentage of all sales contributed by a specific number of leading firms is called the
A) Herfindahl-Hirschman Index.
B) concentration ratio.
C) producer price index.
D) payoff matrix.

Question

Quizplus · Accepted Answer

The description matches the concept of concentration ratio, which measures the market share of the largest firms in an industry. The Herfindahl-Hirschman Index is another measure of concentration, but it considers the size distribution of all firms in an industry. The producer price index measures changes in prices received by producers, while the payoff matrix is a matrix used in game theory to represent the possible outcomes of a game.

The Measurement of Industry Concentration Which Calculates the Percentage of All