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:

Median

The middle value in a data set, which separates the higher half from the lower half.

Unimodal

Refers to a distribution that has a single peak or mode.

Median

The middle value in a sorted list of numbers, effectively dividing the distribution into two equal halves.

Mean

In statistics, it refers to the average value in a data set, calculated by summing all the numbers and dividing by the count of these numbers.