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Industry structure is often measured by computing the Four-Firm Concentration Ratio....What does your adjustment process imply about the CR for the industry?
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Industry with 20 firms and the CR = 30%.
<br>Four-firm concentration ratio is the proportion of total output in an industry that's produced by the four largest firms in the industry. It is commonly used to indicate the degree to which an industry is oligopolistic and how market control is held by the four largest firms in the industry. This implies that the four largest firms in the industry produce just 30% of the output, whereas 70% of the output is produced by the remaining 16 firms. This industry is monopolistically competitive, where there are many producers and many consumers in a given market, consumers have ...

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