Eco204 Week 3 Assignment

Oligopolies and the Competition ECO 204 Prof. Nathan Rondeau June 29th, 2012 In the current economic climate, it is serious for future patronage leaders to understand the industry they argon in. What makes a production line successful, what differentiates their product from the ambition, how basin their potent become much competent? Pricing and efficiency can also be modify by the market social structure of their business. Is the firm an oligopoly or a monopoly? This paper will break apart the most recent (2007) U.S. census Bureaus frugal Census for Manufacturing to determine the four-firm submerging ratio for four specialized categories. This information will servicing the reader identify the train of competition per kinsperson, which category is an oligopoly and why, and the cons oligopolies apply on our society. In piece to identify an oligopoly, there must first be an judgement of the term. As Case, Fair, & Oster defer (2009), An oli gopoly is an industry dominated by a few firms that, by virtue of their individual sizes, are large enough to exercise the market value (pg. 283). This market is structured by several(prenominal) firms within the industry. They can dictate the price of products to gain more profitability and even eliminate recent competitors.

The first category this paper will analyze is mentally ill Milk (311511) which gibe to the 2007 U.S. Census Bureau had a four-firm tightness ratio of 46%; simply meaning the elucidate 4 draw releasers lend 46% of the industrys ingrained production. This is out of 280 milk produce rs. The next four companies only produce a! n additional 12% combined, meaning that the remaining 272 firms share a very diminutive portion of the pie. With that in mind, the level of competition within the unruffled milk industry is very slopped amongst its top producers. dairy Farmers of America and California Dairies, Inc. are the top two producers and hand 30% of the total milk produced (Consolidation and submergence in the U.S. Dairy...If you wish to get a full essay, request it on our website: BestEssayCheap.com

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