The percentage of all sales contributed by the leading firms in an industry is known as
A) the Herfindahl index.
B) the Hirschman index.
C) the zero sum.
D) the concentration ratio.

Question

Quizplus · Accepted Answer

The percentage of all sales contributed by the leading firms in an industry is known as the concentration ratio. It is a measure of market power and competition in an industry. The other options, Herfindahl index and Hirschman index, are also measures of market concentration, but they are different from the concentration ratio in how they calculate market concentration. The zero sum is a term used in game theory and has no relevance to market competition or concentration.

The Percentage of All Sales Contributed by the Leading Firms