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The concentration ratio has a fair amount of correlation to the Herfindahl Index , another indicator of firm size.

Some examples of the four-firm concentration ratio include:

  • Traditional agriculture: Less than 5%

  • Sheet metal: 9%

  • Asphalt paving: 15%

  • Typesetting: 16%

  • Publishing: 23%

  • Soap and detergents: 63%

  • Men's slacks: 75%

  • Aircraft: 79%

  • Greeting cards: 84%

  • Cigarettes: 93%


Market forms can often be classified by their concentration ratio. Listed, in ascending firm size, they are:

  • Perfect Competition , with a very low concentration ratio,

  • Monopolistic Competition , below 40% for the four-firm measurement,

  • Oligopoly , above 40% for the four-firm measurement, (Example- Boeing and Airbus in jetliners)

  • Monopoly , with a near-100% four-firm measurement. (Example- Microsoft in PC operating systems)



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