CAIE A-Level Economics 7.6.5 Concentration ratio
Practise calculating and interpreting concentration ratios from market-share tables to judge market power and competition.
- Syllabus
- 2026–2028
- Course
- Economics 9708
- Level
- A2
Exam points
- calculate a four-firm or three-firm concentration ratio from market-share data
- interpret changes in concentration ratios to infer market power or competition over time
7.6.5—Concentration ratio question 1
The tables show the market share of the five largest firms in two separate industries.
What does this data suggest is most likely?
A
Industry X is highly contestable.
B
Industry X is oligopolistic.
C
Industry Z has a lower level of output than industry X .
D
Industry Z is less competitive than industry X .
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