-According to the above table, if the fourth and fifth largest firms in the industry merge, the four-firm concentration ratio in the industry will be
A) 82.5 percent.
B) 35.8 percent.
C) 69.0 percent.
D) 84.1 percent.

Question

-According to the above table, if the fourth and fifth largest firms in the industry merge, the four-firm concentration ratio in the industry will be
A) 82.5 percent. 
B) 35.8 percent. 
C) 69.0 percent. 
D) 84.1 percent.

Quizplus · Accepted Answer

The correct answer is A because the four-firm concentration ratio is calculated by adding the market shares of the four largest firms in the industry. If the fourth and fifth largest firms merge, their market shares will be combined, resulting in a higher four-firm concentration ratio.

-According to the Above Table, If the Fourth and Fifth