If an industry has 25 firms that collectively have $150 million in total sales and the top four firms in this industry account for $90 million in sales, what is the concentration ratio of the top four firms in this industry?

Question

Quizplus · Accepted Answer

The concentration ratio is calculated by dividing the total sales of the top firms by the total sales of the industry. In this case, the top four firms have $90 million in sales out of a total of $150 million. So, the concentration ratio is $90 million / $150 million = 0.6, or 60 percent.

If an Industry Has 25 Firms That Collectively Have $150