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17 February, 21:18

What is the four-firm concentration ratio in an industry with the following market shares? Firm A 11.2 Firm C 5.1 Firm E 3.6 Firm G 1.6 Firm B 7.7 Firm D 4.6 Firm F 2.2 Other Firms 64.0 Instructions: Enter your response as a percent rounded to one decimal place. Concentration ratio: 1.6 percent

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  1. 17 February, 22:55
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    Answer: 28.6%

    Explanation:

    The four firm concentration ratio is a matrix that shows how much control the 4 largest firms in a market have.

    It is calculated by summing the market share of the four largest firms in the industry.

    So calculating for it would be

    Four firm concentration ratio = 11.2% (firm A) + 7.7% (firm B) + 5.1% (firm C) + 4.6% (firm D)

    = 28.6%

    The four-firm concentration ratio for the above industry is 28.6%
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