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?
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.
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from Business Analysis TrainingChapter 4 / Lesson 6