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Market concentration is affected through various forces, including barriers to entry and existing competition. Market concentration ratios also allows users to more accurately determine the type of market structure they are observing, from a perfect competitive, to a monopolistic, monopoly or oligopolistic market structure.
The higher the four-firm concentration ratio is, the less competitive the market is. When the four-firm concentration ration is higher than 60, the market can be classified as a tight oligopoly. A loose oligopoly occurs when the four-firm concentration is in the range of 40-60. [21]
Perfect competition exists where an industry's concentration ratio is CR n = n/N, where N is the number of firms in the industry. That is, all firms have an equal market share. Low concentration – 40% A concentration ratio of close to 0% implies perfect competition at the least. This is only possible in an industry where there is a very large ...
For a monopoly, the 4-firm concentration ratio is 100 per cent whilst for perfect competition, the ratio is zero. [37] Moreover, studies indicate that a concentration ratio of between 40 and 70 percent suggests that the firm operates as an oligopoly. [ 38 ]
Horizontal concentration: oligopoly or monopoly produced within an area or industry; television (pay or free) is the Brazilian classical model. In 2002 the cable networks Sky and NET dominated 61% of the Brazilian market.
The company’s coverage ratio is well above 1x, making it relatively less risky in the MLP sector. UBS has set a $23 target price objective. Texas Instruments.
If the resulting figure is above a certain threshold then economists will consider the market to have a high concentration (e.g. market X's concentration is 0.142 or 14.2%). This threshold is considered to be 0.25 in the U.S., [ 9 ] while the EU prefers to focus on the level of change, for instance that concern is raised if there is a 0.025 ...
“Gatorade is considered an isotonic sports drink, which is similar to blood concentration," she said. "It is effective at delivering glucose to muscles quickly, which is an important energy ...