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In Economics, the concentration ratio of an industry is used as an indicator of the relative size of firms in relation to the industry as a whole. This may also assist in determining the market form of the industry. One commonly used concentration ratio is the four-firm concentration ratio, which consists of the market share, as a percentage, of the four largest firms in the industry. In general, the N-firm concentration ratio is the percentage of market output generated by the N largest firms in the industry. The concentration ratio has a fair amount of correlation to the Herfindahl index, another indicator of firm size. UK industries with the highest five-firm concentration ratios include[1] UK industries with the lowest five-firm concentration ratios include[2]
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