Question

What wats the five-firm concentration ratio in the broadband industry?

Sources are listed at the end of this chapter.

Short answer

• Three and five firm concentration ratios are also available.
• The concentration ratio is derived by multiplying the market share percentages owned by the businesses in an industry with the most specified firms.

Step-by-step solution

Step 1:Concentration Ratio 

• Proportion The intensity ratio is used to identify whether a certain industry is made up of a few large or small enterprises.
• The four-firm concentration ratio, which consists of the percentage market share of the four largest businesses in an industry, is a regularly used concentration ratio.

Step 2:The eight-firm concentration ratio,  

The eight-firm concentration ratio is derived using an industry's eight

The revenue growth of the major businesses, same like the four-firm concentration ratio.

Three-firm and five-firm concentration ratios are two more concentration ratios that can be employed.

Step 3:There are two more concentration ratios 

• Three and five firm concentration ratios are offered as well.
• The concentration ratio is derived by multiplying the market share percentages owned by the businesses in an industry with the most specified firms.