Question

Industry	Four-Firm Concentration Ratio
Beer brewing	91%
Breakfast cereals	78%
Chocolate confections	69%
Adhesive manufacturing	24.7%
Plastics product manufacturing	5.6

In which industry do the four largest firms collectively have the most market power?

beer brewing

breakfast cereals

chocolate confections

adhesive manufacturing

Answer 1

Four-Firm concentration ratio indicates the market power held by the four largest firms in the industry.

Higher the Four-Firm concentration ratio, higher will be the market power held by the four largest firms in the industry.

Out of all the given industries, Four-Firm concentration ratio is highest in case of Beer brewing industry.

So, it is in Beer brewing industry that the four largest firms collectively have the most market power.

Hence, the correct answer is the option (1) [Beer brewing].