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.
Read more about this topic: Concentration Ratio
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