asked 180k views
5 votes
If

the four-firm concentration ratio for industry X is 52, Multiple
Choice O O O the industry is monopolistically competitive, but on
the threshold of being an oligopoly. the four largest firms accoun

asked
User Breaktop
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1 Answer

3 votes

The correct answer is option C) the four largest firms account for 52% of total industry sales. A four-firm concentration ratio is a measure of the total percentage of an industry's sales that are generated by the four largest firms in that industry. It indicates the concentration of market power in the hands of the four largest firms. In this case, the four-firm concentration ratio for industry X is 52. This means that the four largest firms in the industry account for 52% of total industry sales. Based on this ratio, we can conclude that the industry is oligopolistic in nature because it is dominated by a few large firms that hold a significant market share. Thus, the correct answer is option C) the four largest firms account for 52% of total industry sales.

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