Concentration Ratios: ECO204: PRINCIPLES OF MICROECONOMICS
Concentration Ratios
ECO204: Principles of Microeconomics
Name
Instructor: XXXXXXXX XXX
March 16, 2012
Oligopoly is a very common market form where the sellers are so small in numbers that the actions of any one of them would affect the cost of the products and competition would significantly visible. “Oligopoly is defined as an industry dominated by few firms that, by virtue of their individual sizes are large enough to influence the market price” (Case, Fair, Oster, 2009). These companies are very common when it is carefully observed and measured. The competition would be seriously to do business in a better fashion. In oligopoly concentration ratios are measured, implemented and documented by unites. Each oligopolist is likely to be aware of the actions of the others because of the smaller area of activities. Large companies use concentration ratios to measure the share of industry position according to the current situation. The large company of the women’s and girl’s that make dresses, fluid milk industry, envelope for mailing and computers suppliers would be discovered in this paper to determine if they meet the objectives of oligopoly.
As we look at the criteria for this paper, we are directed to use example of fluid milk, Women’s and girl’s cut and sew dresses, envelopes for mailing and electronics computers. The fluid milk industry (311511) produces products like milk, cheese, butter, and several different dairy consumable products where the milk industry alone cover almost 278 of the similar producer [ Census, 2007]. The fluid milk industry’s concentration ratio is based on the four largest companies that are covering more than 45% of the production that has been produced industry wide. By analyzing the report of the census I would make a conclusion that the fluid milk industry should not be considered as an oligopoly. Because, the milk industry is not conquered by any selected number of producers or
ECO204: Principles of Microeconomics
Name
Instructor: XXXXXXXX XXX
March 16, 2012
Oligopoly is a very common market form where the sellers are so small in numbers that the actions of any one of them would affect the cost of the products and competition would significantly visible. “Oligopoly is defined as an industry dominated by few firms that, by virtue of their individual sizes are large enough to influence the market price” (Case, Fair, Oster, 2009). These companies are very common when it is carefully observed and measured. The competition would be seriously to do business in a better fashion. In oligopoly concentration ratios are measured, implemented and documented by unites. Each oligopolist is likely to be aware of the actions of the others because of the smaller area of activities. Large companies use concentration ratios to measure the share of industry position according to the current situation. The large company of the women’s and girl’s that make dresses, fluid milk industry, envelope for mailing and computers suppliers would be discovered in this paper to determine if they meet the objectives of oligopoly.
As we look at the criteria for this paper, we are directed to use example of fluid milk, Women’s and girl’s cut and sew dresses, envelopes for mailing and electronics computers. The fluid milk industry (311511) produces products like milk, cheese, butter, and several different dairy consumable products where the milk industry alone cover almost 278 of the similar producer [ Census, 2007]. The fluid milk industry’s concentration ratio is based on the four largest companies that are covering more than 45% of the production that has been produced industry wide. By analyzing the report of the census I would make a conclusion that the fluid milk industry should not be considered as an oligopoly. Because, the milk industry is not conquered by any selected number of producers or