question archive A high four-firm concentration ratio implies A
A high four-firm concentration ratio implies A
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A high four-firm concentration ratio implies
A. an absence of competition.
B. a presence of competition.
C. an absence of differentiation.
D. a presence of differentiation.
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The correct answer to the given question is option A. an absence of competition.
The four-firm concentration ratio for a given industry is usually determined by taking a sum of the market shares of top 4 players in the industry. Thus, a high value of four-firm concentration ratio implies that the maximum market is captured by the top 4 players and there is hardly any competition in the industry.
