Question

current objective
use market shares to calculate the four - firm concentration ratio

question
what is the four - firm concentration ratio for an industry where the top nine firms having following distribution of sales:
15%, 12%, 11%, 10%, 9%, 8%, 6%, 4%, and 3%?

provide your answer below:

%

Explanation:

Step1: Understand the four - firm concentration ratio

The four - firm concentration ratio is the sum of the market shares of the four largest firms in an industry.

Step2: Identify the four largest market shares

The given market shares are \(15\%\), \(12\%\), \(11\%\), \(10\%\), \(9\%\), \(8\%\), \(6\%\), \(4\%\), and \(3\%\). The four largest are \(15\%\), \(12\%\), \(11\%\), and \(10\%\).

Step3: Calculate the sum

$$15 + 12+11 + 10=48$$

Answer:

\(48\)