Concentration Levels
Concentration ratios range from 0 to 100 percent. The levels reach from no, low or medium to high to "total" concentration.
- No concentration
- 0% means perfect competition or at the very least monopolistic competition. If for example CR4=0 %, the four largest firm in the industry would not have any significant market share.
- Total concentration
- 100% means an extremely concentrated oligopoly. If for example CR1= 100%, there is a monopoly.
- Low concentration
- 0% to 50%. This category ranges from perfect competition to oligopoly.
- Medium concentration
- 50% to 80%. An industry in this range is likely an oligopoly.
- High concentration
- 80% to 100%. This category ranges from oligopoly to monopoly.
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“The only inequalities that matter begin in the mind. It is not income levels but differences in mental equipment that keep people apart, breed feelings of inferiority.”
—Jacquetta Hawkes (b. 1910)