The Four Largest Firms in an Industry Account for the Following

question 159

Essay

The four largest firms in an industry account for the following value of industry sales: 12 percent, 8 percent, 5 percent and 4 percent. Calculate the four-firm concentration ratio. Would this industry be regarded as competitive or concentrated?

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Definitions:

Insurance Coverage

The scope of protection provided by an insurance policy against various risks, including damage, loss, or liability.

Court Action

Legal proceedings initiated in a law court aimed at resolving disputes or enforcing rights.

Negligently Arranged

Refers to a situation where items or affairs are organized or managed without proper care, leading to potential harm or loss.

Professional Negligence

Failure of a professional individual to provide the required standard of care, skill, or diligence, leading to client harm or loss.