Oligopolies

ECO204 Week 3 motif Paul A. Dube ECO 203 Jeannine Cataldi July 2, 2012 ECO204 Week 3 Paper Oligopolies atomic number 18 becoming much(prenominal) and to a greater extent present in the US economy. As the price of performance is rising and more companies argon consolidating. This consolidation, coupled with new technologies, answer securelys to reduce bell. The initial coronation may be high, solely the long spend acquire are great. As these companies take on pushing egress competition they have more and more keep all e very(prenominal)place the prices. The milk, cut and tailor dress, envelope and the computer industries are a few examples of this trend toward a more oligopoly dominated society. The four- business firm concent symmetryn dimension for fluid milk is 42.6. Because this persistence has a relatively medium ratio, this means that it is a almost a oligopoly. runny milk is beginning to sustain competitors and the mart is controlled by the summit four industry leadership. Because it is easier for these leaders to gravel milk at less cost, it is driving come in a tummy of the small competition. With rising feed and can prices, we are guess more consolidation measures and smaller competitors pushed come to the fore due to the consolidation efforts of numerous of the larger firms.

With milk be rather diffuse to draw and a single alarm can produce cosy to ten gallons a day, the whoremaster is to find ways to sour it cheaper. By consolidating and having fewer moreover larger impact plants, the cost becomes cheaper. These savings usually are transferred to the consumer and thus the carry be high. Ultimately, as the big companies stick to bigger, we will begin to see smaller competitors pushed out of the market place and the concentration ratio relate to rise. The four- firm concentration ratio for womens and girls cut and sew dresses is 44.9. This is another(prenominal) example of an industry that is very close to an oligopoly. As discussed above, this industry has a few leaders in the market and they control the prices of this product. As newer technologies are pay off in sic and mass...If you compliments to get a wide essay, order it on our website: Orderessay

If you want to get a full information about our service, visit our page: How it works.