Two Common Ratios
- The Four-Firm Concentration Ratio measures the total market share of the four largest firms in an industry.
- The Eight-Firm Concentration Ratio measures the total market share of the eight largest firms in an industry.
Usually, these two common ratios are comparable from industry to industry, while concentration ratios for other numbers of firms can be also calculated.
Read more about this topic: Concentration Ratio
Famous quotes containing the words common and/or ratios:
“It is common knowledge to every schoolboy and even every Bachelor of Arts,
That all sin is divided into two parts.
One kind of sin is called a sin of commission, and that is very
important,”
—Ogden Nash (1902–1971)
“Typography is not only a technology but is in itself a natural resource or staple, like cotton or timber or radio; and, like any staple, it shapes not only private sense ratios but also patterns of communal interdependence.”
—Marshall McLuhan (1911–1980)