Скачать или смотреть Market Structures - Explaining the Concentration Ratio - A Level and IB Economics

The concentration ratio is the focus of this short revision topic video using recent market share data from three different markets.

WHAT IS THE CONCENTRATION RATIO?

A concentration ratio measures the combined market shares of a given number of firms to the whole market size. We usually consider the 3-firm or 5-firm concentration ratio. Concentration ratios are used to assess the extent to which a given market is oligopolistic, monopolistic or highly competitive. An oligopoly is defined when there is a 5-firm concentration ratio of greater than 60%. When the ratio is high, the regulatory authorities may be concerned about a lessening of competition which could then damage consumer welfare.

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