-Use the above table. If firms 4 and 5 merge, the four-firm concentration ratio will be
A) 80 percent.
B) 75 percent.
C) 64 percent.
D) 50 percent.

Question

-Use the above table. If firms 4 and 5 merge, the four-firm concentration ratio will be
A) 80 percent. 
B) 75 percent. 
C) 64 percent. 
D) 50 percent.

Quizplus · Accepted Answer

The four-firm concentration ratio is calculated by adding the market shares of the four largest firms. If firms 4 and 5 merge, their combined market share will be added to the top three firms' shares to determine the new concentration ratio.

-Use the Above Table