Suppose that the four-firm concentration ratio for chewing gum is 87. This ratio indicates that:

		the chewing gum industry is highly competitive.
		the four largest chewing gum manufacturers account for 87 per cent of total sales.
		the four largest chewing gum manufacturers are the only producers of gum in the economy.
		13 percent of the chewing gum produced in the economy is produced by the four largest firms in the industry.