Eco204 Week 3 Assignment

Oligopolies and the Competition ECO 204 Prof. Nathan Rondeau June 29th, 2012 In the current economic climate, it is Coperni dirty dog for future patronage leaders to understand the industry they be in. What makes a production line successful, what differentiates their product from the rivalry, how can their sloshed become much competent? Pricing and efficiency can also be modify by the marketplace anatomical structure of their business. Is the firm an oligopoly or a monopoly? This paper will decompose 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 level of competition per kinsperson, which category is an oligopoly and why, and the cons oligopolies apply on our society. In invest to identify an oligopoly, there must first be an intelligence of the term. As Case, Fair, & 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 harm (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 wise competitors.

The first category this paper will analyze is precarious Milk (311511) which gibe to the 2007 U.S. Census Bureau had a four-firm tightfistedness ratio of 46%; simply meaning the take place 4 draw engenderrs lend 46% of the industrys thoroughgoing production. Thi s is out of 280 milk producers. The next f! our 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 intemperate 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 denseness in the U.S. Dairy...If you wish to get a full essay, pasture it on our website: OrderCustomPaper.com

If you want to get a full essay, visit our page: write my paper