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      Question

      If you have found the percentage of the value of sales

      accounted for by the four largest firms in an industry, you have found the
      A elasticity of supply value Correct Answer Incorrect Answer
      B Herfindahl-Hirschman Index Correct Answer Incorrect Answer
      C elasticity of demand value Correct Answer Incorrect Answer
      D four-firm concentration ratio. Correct Answer Incorrect Answer
      E All of the above Correct Answer Incorrect Answer

      Solution

      A four-firm concentration ratio is one way of measuring the extent of competition in a market. It is calculated by adding the market shares—that is, the percentage of total sales—of the four largest firms in the market.

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