Concentration ratio
The concentration ratio is like counting how many apples one person has compared to how many apples everyone else has. It helps us understand how much of something one company or group controls compared to others.
Let's say there are 10 apples and one person has 7 apples while everyone else only has 1 apple each. The concentration ratio for that person would be very high because they have a lot more apples than anyone else.
It's important to know concentration ratios because when one company or group has a lot of control over something, they can make decisions that affect everyone else. This can be good or bad depending on the situation.
By calculating the concentration ratio, we can see how much power one company or group has and make decisions about whether it's fair or not.
Let's say there are 10 apples and one person has 7 apples while everyone else only has 1 apple each. The concentration ratio for that person would be very high because they have a lot more apples than anyone else.
It's important to know concentration ratios because when one company or group has a lot of control over something, they can make decisions that affect everyone else. This can be good or bad depending on the situation.
By calculating the concentration ratio, we can see how much power one company or group has and make decisions about whether it's fair or not.
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