Table : TABLE 2 FOUR-FIRM CONCENTRATION RATIO
TABLE 2 FOUR-FIRM CONCENTRATION RATIO
Industry 1 is dominated by a large firm with 65% of market share, whereas Industry 2 contains four fairly equal-sized firms, with smaller firms making up the rest of both industries. The CR-4 is the same in both industries, although Industry 2 would be expected to be much more competitive.
Industry 1Industry 2
Firm 1’s market share65%25%
Firm 2’s market share10%20%
Firm 3’s market share5%20%
Firm 4’s market share5%20%
All other firms’ market share combined15%15%
Four-firm concentration ratio8585