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    Concentration Ratio

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    A firm's average cost is $20 and it charges a price of $20. The Lerner index for this firm is:
    A industry is comprised of ten (10) firms, each with an equal market share. What is the 4-firm
    Concentration ratio of this industry?

    © BrainMass Inc. brainmass.com March 4, 2021, 11:18 pm ad1c9bdddf
    https://brainmass.com/economics/short-and-long-run-cost-functions/calculating-firms-concentration-ratio-411014

    Solution Preview

    Note that AV = P, which means that the firm makes no economic profit. This firm must be a perfect ...

    Solution Summary

    This solution explains how to determine a firm's concentration ratio.

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