-In Exhibit L-2, the table shows the market shares of five firms that operate in three different industries. The four-firm concentration ratio in Industry II is equal to
A) 30 percent
B) 50 percent
C) 70 percent
D) 85 percent
E) 100 percent

Question

-In Exhibit L-2, the table shows the market shares of five firms that operate in three different industries. The four-firm concentration ratio in Industry II is equal to
A) 30 percent 
B) 50 percent 
C) 70 percent 
D) 85 percent 
E) 100 percent

Quizplus · Accepted Answer

The four-firm concentration ratio is calculated by adding the market shares of the top four firms in the industry. Without the specific numbers from Exhibit L-2, the correct answer cannot be determined from the information provided. However, based on the options given, if the answer is D) 85 percent, it suggests that the sum of the market shares of the top four firms in Industry II equals 85 percent of the market.

-In Exhibit L-2, the Table Shows the Market Shares of Five