An industry having a four-firm concentration ratio of 30 percent

Posted By Admin @ September 03, 2022


"What is the four-firm concentration ratio for an industry where the top nine firms having following distribution of sales: 20%, 12%, 11%, 10%, 9%, 3%, 6%, 4%, and 3%





The computation of the four-firm concentration ratio for an industry is shown below:

= 20% + 12% + 11% + 10%

= 53%

We simply added the top four ratios so that the four firm  concentration ratio  could come

ANd, the other given percentage would be ignored as it shows the less distribution of sales as compares to the top one

Hence, the ratio is 53%

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