What Roth-Child Index? Literature & Language Term Paper (Term Paper Sample)

Topic : What is C-Four Concentration Ratio?
What is roth child index?
Roth child index refers to the measure of price sensitivity of a product in the market. A good example is a soft drink firm such as, Coca-cola and Pepsi which dominated in the entire markets because their products have a higher elastic demand in the market.When a product has a higher value index, the firm opens many firms to meet the quantity demanded in the market, while low value index indicates that there will be fewer firms producing low products.Some products have higher price mark-up margin with higher demand in the market depending on the marketing strategy of a product and technology.
What is c-four concentration ratio?
It refers to the fraction of the entire market sales produced by the four-largest firms in the industry. Furthermore, Concentration ratios measures the entire output produced by the largest firm in the industry. The factor provides a significant impact of measuring the size and structure of an industry. High value indicates that there is low competition among producers in the industry while lower value indicates that there is high competition among producers in the industry.
How to estimate the c-four concentration ratio?
C4= S1+S2+S3+S4
Total industry sales
How to estimate the roth-child index?