What is the fourfim concentration ratio in an industry with

What is the four-fim concentration ratio in an industry with the following market shares? Firm E 3.6 FirmG 11.4 7.3Firm D 3.9Firm F2.2 Other Firms 64.9 Firm C 5.1 Firm A Firm B Instructions: Enter your response as a percent rounded to one decimal place Concentration ratio percent

Solution

Four firm concentration ratio consists of market share of four largest firms in an industry and it is expressed as a percentage.

Four largest firms in this industry are Firm A, Firm B, Firm C , Firm D.

Four firm Concentration ratio = 11.4 ? + 7.3? + 5.1? + 3.9? = 27.7?

Answer: 27.7 percent.