If industry sales are $1,000, and the top four firms have sales of $500, $200, $100, and $50, respectively, what will be the four-firm concentration ratio?

Question

Quizplus · Accepted Answer

The four-firm concentration ratio is calculated by adding up the market share of the top four firms. In this case, the top four firms have sales of $500 + $200 + $100 + $50 = $850. 
Therefore, the four-firm concentration ratio is (850/1000) x 100 = 85%. 
Hence, the best choice is B.

If Industry Sales Are $1,000, and the Top Four Firms