In economics, oligopolies are industries dominated by a few firms that, by virtue of their individual sizes, are large ample to influence the market price. These oligopolies embody in many forms and products may be homogenous or differentiated. (Case, Fair, Oster, 2009. Pg. 283). As we review the preoccupancy ratios of the four manufacturing firms, fluid milk, womens and girls crook & sew dresses, envelopes, and electronic computers, we will discover that three of these outlive as oligopolies which croup be both bad and reason adequate for society. These concentration ratios show us the share of industry product in sales or employment accounted for by the sack up firms. In the fluid milk industry establishments are to drive with engaged in manufacturing processed milk products, such as pasteurized milk or solve and sour mosh and manufacturing fluid milk dairy substitutes from soybeans and other nondairy substances. Of the 315 firms that were eval uated in the 2002 scotch Census, 42.6% of the market share was controlled by the top four companies. It is take a shit that this industry an oligopolistic industry. One of the top four companies Dean Foods is matchless of the countrys largest processor and distributor of dairy products.
This fusion markets under more than 50 local and regional dairy brands and private labels, with over 25k employees in over 100 plants (Dean Foods, 2012). The trouble with the tightly consolidated market in this industry is that it leaves teensy room if any for conventional farmers to survive. This also means that as dairy pro ducts are mass produced to reduce cost to co! nsumers, farmers atomic number 50 no longer afford to compete as answerable dairy farmers who result better treatment for their animals and avoid the smock plague of hormones. You can however argue that this firm is able to provide financial support, food, and other resources to non-profit organizations that aim to prevent childishness lust in the U.S. due to their size and volume of output. In...If you wishing to pick up a full essay, order it on our website: OrderCustomPaper.com
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