Questions
Single choice
A high Four-Firm Concentration Ratio (CR4), such as 80%, indicates:
Options
A.A tight oligopoly where a few firms dominate the market
B.A fragmented industry with many equal-sized firms
C.An industry with limited pricing power
D.A perfectly competitive market
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Step-by-Step Analysis
Consider the concept of the Four-Firm Concentration Ratio (CR4), which measures the combined market share of the four largest firms in an industry. A high CR4 signals that a large portion of total industry sales is captured by a small number of firms, indicating concentrated market structure.
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Similar Questions
8. The Herfindahl index is: A. the sum of the squared percentage market shares of all firms in the industry. B. the sum of the market shares for the top 10 firms in the industry. C. a measure of product differentiation in the market. D. a measure of how easy it is for new firms to enter the market.
Part 1'The commercial banking industry in Canada is less competitive than the commercial banking industry in the United States because in Canada only a few large banks dominate the industry, while in the United States there are around 6,500 commercial banks.' Is this statement true or false? Explain your answer.Part 2 A. True. The reason for the large number of US banks is regulations that promote competition such as branching restrictions B. False. The reason for the large number of US banks is anticompetitive regulations such as branching restrictions C. True. The banking industry is less competitive in Canada than in the United States because Canada has a national banking system, i.e., owned and operated by the government D. False. It is not true that the industry is dominated by a few large firms; thus, based on the Herfindahl-Hirschman Index, the banking industry in Canada is just as competitive as in the United States
Which of the following statements is NOT correct?
Which of the following industries has the highest concentration ratio?
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