Suppose an industry has ten firms. The market shares of each firm are:...

Question:

Suppose an industry has ten firms. The market shares of each firm are: 20%,15%,12%,10%,10%,8%,8%,7%,5%,and 5%

What is the four-firm concentration ratio?

Firm:

The firm refers to the entity that is engaged in some business to earn maximum profits. A firm can also be called an organization or company. The group of similar firms makes an industry.

Answer and Explanation:

The concentration ratio of four firms in the industry represents the market share acquired by the top four firms in the concerned industry.

Market...

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Industry Analysis for Business Plans

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