The following statements are true regarding concentration ratios:
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They may overstate the degree of competition because they ignore imported products. – This is true since concentration ratios typically focus on domestic firms and may not take into account the competition from imported goods.
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They may overstate the degree of competition because inter-industry competition is ignored. – This is also true, as concentration ratios do not reflect competition that might come from outside the specific industry being measured.
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They measure the percentage of total sales accounted for by the (for example) four largest firms. – This statement is accurate. Concentration ratios typically express the total sales (or market share) of the largest firms within an industry, such as the four largest firms (CR4).
The statement "They provide detailed insights as to the price and output behavior of firms that comprise the various industries" is misleading, as concentration ratios do not provide such detailed insights. They give a general sense of market structure but do not detail individual firm behavior.
In conclusion, statements 1, 3, and 4 are correct regarding concentration ratios.