Question

Suppose the market for smoothies is supplied by 11 competitors. Their respective market shares are 40%, 20%, 10%, 5%, 5%, 5%, 4%, 4%, 4%, 2%, and 1%. Compute C4 for the smoothie market. Your answer should be a decimal between 0 and 1, rounded to the second decimal place (e.g. 0.50).

Answer 1

Answer:

0.75

Explanation:

Four firm concentration: Share of four firms / Total market share

Four firm share: 40 + 20+10+5

= 75

CR = 75/100

= 0.75 or 75 %