One measure of the extent of competition in an industry is the concentration ratio. What level of concentration indicates that a

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3 years ago

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One measure of the extent of competition in an industry is the concentration ratio. What level of concentration indicates that a

n industry is an oligopoly?
Most economists believe that a four-firm concentration ratio of __________ (less / greater than) than __________ percent indicates that an industry is an oligopoly. (Enter your response as an integer.)

Business

1 answer:

GarryVolchara [31] · Answer 1 · 2022-03-07T11:51:03+03:00

Answer: greater, 40%

Explanation: Most economist believe that a four firm concentration ratio is "greater" than "40%" indicate that an oligopoly.

Concentration ratio is simply the ratio of the combination of market shares of a specific numbers of firm to the size of a market. Three-firm, four-firm and five-firm concentration ratio are the most common to considered.