Calculate the four firm concentration ration

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Twenty restaurants compete in the Pizza market to sell pizza.The total sales of all firms selling the product are $ 4 million. Ranking thefirms' sales from highest to lowest, we find the top four firms' sales to be $360,000,$320,000, $250,000, and $230,000, respectively. <?xml:namespace prefix = o ns = "urn:schemas-microsoft-com:office:office" />

a. Calculate the four firm concentration ration in the market for the product. SHOW allwork, including the formula

b. Explainthe meaning of the CR4 obtained in part (a) above?

c. Suppose the CR4 is approximately 1%, what can you conclude about the type of marketstructure in the industry? (hint: competitive or monopolistic?). Explain

Reference no: EM131400518

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