Suppose that a small town has seven burger shops whose respective shares of the local hamburger market are (as percentages of al

Question

2 years ago

5

Suppose that a small town has seven burger shops whose respective shares of the local hamburger market are (as percentages of al

l hamburgers sold): 27%, 26%, 22%, 12%, 7%, 4%, and 2%. What is the four-firm concentration ratio of the hamburger industry in this town?

Business

1 answer:

denpristay [2] · Answer 1 · 2022-11-27T02:58:48+03:00

denpristay [2]2 years ago

4 0

Answer:

87%

Explanation:

The four firm concentration ratio calculates the concentration ratio of the 4 largest firms in an industry. This is done by adding the market share of the 4 largest firms

0.27 + 0.26 + 0.22 + 0.12 = 0.87