Question

current objective
use market shares to calculate the four - firm concentration ratio
question
what is the four - firm concentration ratio for an industry with the following distribution of sales:
53%, 3%, 8%, 15%, 21%?
provide your answer below:
%

Explanation:

Step1: Sort the market shares in descending order

We have the values \(53\%\), \(3\%\), \(8\%\), \(15\%\), \(21\%\). Sorting them gives \(53\%\), \(21\%\), \(15\%\), \(8\%\), \(3\%\).

Step2: Sum the top - four market shares

$$53\%+21\% + 15\%+8\%=(53 + 21+15 + 8)\%=97\%$$

Answer:

\(97\)