The Concentration Ratio <Back to Last Page> <Full Glossary>

Definition of The Concentration Ratio: The concentration ratio ia a way of measuring the concentration of market share held by particular suppliers in a market. "It is the percentage of total market sales accounted for by a given number of leading firms." Thus a four-firm concentration ratio is the total market share of the four firms with the largest market shares. (Sometimes this particular statistic is called the CR4.) (Econterms)

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