You Are Told That the Four-Firm Concentration Ratio in an Industry

question 22

Multiple Choice

You are told that the four-firm concentration ratio in an industry is 20. Based on this information you can conclude that

• A)each of the top four firms has, on average, 20 percent of industry sales.
• B)this industry's market structure is oligopoly.
• C)the four largest firms account for 20 percent of industry sales.
• D)each of the four largest firms accounts for 5 percent of industry sales.

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