Concentration ratios
Concentration ratios
Glossary of business
Definition of concentration ratios
The concentration ratio measures the proportion of a market accounted for by, say, the five largest firms (in other words the market share of the firms). A 5 firm concentration ratio of 75% would indicate that the five largest firms had a total market share of 75%. The concentration ratio can therefore help to measure the competitive conditions in the market.
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Terminology about business
Job world
Definition and meaning of concentration ratios
Meaning of concentration ratios
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