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Suppose that a small town has seven burger shops whose respective shares of the local hamburger market are (as percentages of all hamburgers sold): 27%, 26%, 22%, 12%, 7%, 4%, and 2%. What is the four-firm
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28 votes
28 votes
Suppose that a small town has seven burger shops whose respective shares of the local hamburger market are (as percentages of all hamburgers sold): 27%, 26%, 22%, 12%, 7%, 4%, and 2%. What is the four-firm concentration ratio of the hamburger industry in this town?

User Seongkuk Han
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1 Answer

18 votes
18 votes

Answer:

87%

Step-by-step 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

User Jabed
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