ECO204 Week 3 Paper Paul A. Dube ECO 203 Jeannine Cataldi July 2, 2012 ECO204 Week 3 Paper Oligopolies argon becoming more than(prenominal) and more present in the US economy. As the price of production is rising and more companies are consolidating. This desegregation, coupled with new technologies, help securelys to reduce cost. The initial investment may be high, but the long leave out profits are great. As these companies incur pushing out competition they have more and more control whole over the prices. The take out, cut and tailor dress, envelope and the computer industries are a few examples of this trend toward a more oligopoly reign society. The four- firm concent symmetryn dimension for fluid milk is 42.6. Because this industry has a relatively medium ratio, this means that it is a almost a oligopoly. Fluid milk is posening to lose competitors and the mart is controlled by the top four industry leaders. Because it is easier for these leaders to gravel milk at less cost, it is driving out a corp of the smaller competition. With rising feed and fuel prices, we are compute more consolidation measures and smaller competitors pushed out due to the consolidation efforts of many of the larger firms.
With milk being rather sink in to harvest and a single cow can produce close to ten gallons a day, the trick is to find ship canal to process it cheaper. By consolidating and having fewer but larger involve plants, the cost becomes cheaper. These savings usually are transferred to the consumer and thus the submit stays high. Ultimately, as the big companies get bigger, we will begin to see smaller competitors pushed out of the market and the concentration ratio continu! e to rise. The four- firm concentration ratio for womens and girls cut and fasten dresses is 44.9. This is another 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 set in pose and mass...If you want to get a full essay, order it on our website: OrderEssay.net
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