Essay Available:
Pages:
2 pages/≈550 words
Sources:
2
Style:
APA
Subject:
Mathematics & Economics
Type:
Essay
Language:
English (U.S.)
Document:
MS Word
Date:
Total cost:
$ 8.64
Topic:
Manufacturing Industry Evaluation
Essay Instructions:
Manufacturing Industry Evaluation
Economists sometimes use concentration ratios to evaluate whether industries are oligopolies. In this assignment, you will make your own determination using the most recent data available. You will also discuss the merits and disadvantages of oligopolies in light of your research.
Go to the Concentration Ratios in Manufacturing (http://www(dot)census(dot)gov/epcd/www/concentration(dot)html)
page at the website of the U.S. Census Bureau, click on the PDF of the most recent Economic Census for Manufacturing (NAICS 31-33), and answer the following questions in a two page paper formatted according to APA style.
1. Find the four-firm concentration ratios for the following industries: fluid milk (311511), women's and girl's cut & sew dresses (315233), envelopes (322232), and electronic computers (334111).
2. Assess the level of competition for each of the four industries.
3. Define oligopolies and identify which of the listed industries qualify as oligopolies.
4. Describe why these industries qualify as oligopolies and identify some of the firms that operate in the listed industries.
5. Discuss whether or not oligopolies are always bad for society, using examples from the firms you described.
Essay Sample Content Preview:
Manufacturing Industry Evaluation
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To economists, businesses and policy makers the level of competition is a significant issue which may be measured through the use of concentration ratios. Consequently, concentration ratios determine the market size of firms in an industry with the most common measures being four firms and eight firms concentration ratios. The four firm concentration ratio considers the market concentration of the four larges firms in an industry. As the ratio increases competition decreases such that a concentration value of 0 indicates perfect completion while a value of 100 indicates the presence of a monopoly. Market competition is important, because it affects prices and the level of wages. When there is more market competition then market prices reduce. On the other hand, wages are likely to be lower under competition while productivity rises. This paper will look into the level of competition in four industries through the use of the four firm concentration ratio and also the impact of oligopoly on the society.
According to Tucker (2010) an oligopoly market structure falls under imperfect competition whereby few large sellers dominate an industry or market. Nonetheless, there could be differentiated or homogenous product and market entry is difficult. The oligopolistic market structure occurs when competitive firms merge as the industry market grows. This could be due to vertical mergers whereby firms acquire others across a distribution channel while horizontal mergers occur upon the acquisition of firms producing similar goods or offering similar services (Tucker, 2010). Because of their ability to influence prices, they lead to higher prices. Thus, the government may intervene through legislations to minimize their bargaining power.
The women's and girl’s cut & sew d...
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