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Four Firm Concentration Ratio

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Ten firms complete in a market to sell product X. The total sales of all firms selling the product are $1 million. ranking the firms' sales from highest to lowest, we find the top four firms' sales to be $175,000, $150,000, $125,000, and $100,000, respectively. Calculate the four-firm concentration ratio in the market for product X.

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Solution depicts the steps to calculate four firm concentration ratio for the given case.

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Total market sales=$1000,000

Four firm concentration ratio is defined as the ...

Solution provided by:
Lokesh Jain, MSc
Education
  • BEng (Hons) , Birla Institute of Technology and Science, India
  • MSc (Hons) , Birla Institute of Technology and Science, India
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