Asked by anita

Cencentration Ratio- Suppose you have an industry with 20 firms and the cr is 20% how would you describes this industry

Answers

Answered by economyst
The concentration ratio is usually thought of as the percent of an industry (i.e., market share) made up of the top 4 (sometimes 5) firms in the industry. If 4/20 = 20% of the firms make up 20% of the industry, then the all firms in the industry must be very close in size and the industry is likely to be highly competitive.

Related Questions