Eco204 Week 3 Assignment

Oligopolies and the Competition ECO 204 Prof. Nathan Rondeau June 29th, 2012 In the current economic climate, it is central for future patronage leaders to understand the industry they argon in. What makes a production line successful, what differentiates their product from the tilt, how canister their crocked become much competent? Pricing and efficiency can also be modify by the securities industry anatomical structure of their business. Is the firm an oligopoly or a monopoly? This paper will disassemble the most recent (2007) U.S. census Bureaus stinting Census for Manufacturing to determine the four-firm submerging ratio for four circumstantial categories. This information will servicing the reader identify the take of competition per kinsperson, which category is an oligopoly and why, and the cons oligopolies apply on our society. In determine to identify an oligopoly, there must first be an soul of the term. As Case, Fair, & Oster d efer (2009), An oligopoly is an industry dominated by a few firms that, by virtue of their individual sizes, argon large enough to exercise the market set (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 cutting competitors.

The first category this paper will analyze is legato Milk (311511) which gibe to the 2007 U.S. Census Bureau had a four-firm engrossment ratio of 46%; simply meaning the baksheesh 4 draw obtainrs lend 46% of the industrys replete(p) production. This is out of 280 milk producers. T he next four companies only produce an addit! ional 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 muscular 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 assimilation in the U.S. Dairy...If you wish to get a full essay, tramp it on our website: BestEssayCheap.com

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