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This is the answer I received for posting 30071 below. I need to answer a second part to this respond.
An industry with 20 firms but the CR = 80% is called "high concentration", for a concentration ratio of 80 to 100 percent is viewed as high concentration. Government regulators are usually most concerned with industries falling into this category. It is a good indication of oligopoly and that these four firms have significant market control.

Answers Needed to these:

*What are some reasons why this industry has a high CR while the other industry has a low CR?

*IS it possible for smaller firm to thrive and profit in such an industry? How?

*Contrast the effects efficiency if the dominating firms use a price leadership model versus a contestable markets model.

By OTA: Jiong Tu, PhD (IP)

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