Editing Concentration ratio (section)

=== Example ===
The table below shows the market shares of the largest firms in two different industries (Industry A and Industry B). Aside from the tabulated market shares for Industry A and Industry B, both industries are the same in terms of the number of firms operating in the industry and their respective market shares. In this example, in both cases, all other firms have a share of less than 10%.
{| class="wikitable"
|+Percentage market shares for two different industries
!Firm
!Industry A
!Industry B
|-
|Firm 1
|20%
|35%
|-
|Firm 2
|20%
|25%
|-
|Firm 3
|20%
|10%
|-
|Firm 4
|20%
|10%
|}


It is evident from these figures that Industry B is more concentrated than Industry A, since the market share is distributed more heavily towards the more dominant firms. However, Industry A and Industry B both have ''CR''<sub>4</sub> ratios of 80%. This shows that the CR ratio does not fully take into account the distribution of market share amongst the most dominant firms.