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Market Share and Concentration Ratio

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These top firms in industry C have market shares of 30, 25, 10 and 5% respectively. The top four firms in industry D have market shares of 15, 12, 8 and 4 % respectively.

Calculate the four firm concentration ratios for the two industries. Which industry is more concentrated?

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Solution Summary

This solution explains how to calculate concentration ratios of firms based on market share.

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To find the four firm concentration ratio, you will add the market shares of the ...

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