Concentration ratio/Definition: Difference between revisions
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A ratio that shows the extent to which a [[market]] is dominated by a small group of suppliers. An example is the 5-firm concentration ratio, which is the percentage of total sales of a product that is supplied by the five largest suppliers. An alternative measure is the [[Herfindahl Index]] | A ratio that shows the extent to which a [[market (economics)|market]] is dominated by a small group of suppliers. An example is the 5-firm concentration ratio, which is the percentage of total sales of a product that is supplied by the five largest suppliers. An alternative measure is the [[Herfindahl Index]] | ||
Latest revision as of 18:47, 7 March 2024
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Concentration ratio [r]: A ratio that shows the extent to which a market is dominated by a small group of suppliers. An example is the 5-firm concentration ratio, which is the percentage of total sales of a product that is supplied by the five largest suppliers. An alternative measure is the Herfindahl Index