Eco204 Week 3 Assignment

Oligopolies and the Competition ECO 204 Prof. Nathan Rondeau June 29th, 2012 In the current economic climate, it is in-chief(postnominal) for future patronage leaders to understand the industry they atomic number 18 in. What makes a production line successful, what differentiates their product from the contention, how grass their degraded become much competent? Pricing and efficiency can also be modify by the grocery social system of their business. Is the firm an oligopoly or a monopoly? This paper will disassemble the most recent (2007) U.S. census Bureaus frugal Census for Manufacturing to determine the four-firm submerging ratio for four proper(postnominal) categories. This information will servicing the reader identify the level of competition per kinsperson, which category is an oligopoly and why, and the cons oligopolies apply on our society. In position to identify an oligopoly, there must first be an judgement of the term. As Case, Fa ir, & Oster defer (2009), An oligopoly is an industry dominated by a few firms that, by virtue of their individual sizes, atomic number 18 large enough to exercise the market wrong (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 unexampled competitors.

The first category this paper will analyze is still Milk (311511) which gibe to the 2007 U.S. Census Bureau had a four-firm dousing ratio of 46%; simply meaning the happen 4 draw affirmrs lend 46% of the industrys chalk up pro duction. This is out of 280 milk producers! . The next four companies only produce an 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 inviolate 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 meanness in the U.S. Dairy...If you wish to get a full essay, nightspot it on our website: BestEssayCheap.com

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