Th3.4: N-firm Concentration Ratios Flashcards
1
Q
What can the concentration of supply in the industry be indicated by?
A
the concentration ratio which measures the percentage of the total market that a particular number of firms have
2
Q
What does the 3 firm concentration ratio show?
A
the percentage of the total market held by the three biggest firms, same for four and so on
3
Q
What is one way the N-firm concentration ratio can be worked out?
A
by adding the percentages of market share for the firms
4
Q
What is the second way the N-firm concentration ratio be worked out - formula!
A
total size of n firms
—————————- x 100
total size of market
