Manufacturing Industry Evaluation

In economics, oligopolies are industries dominated by a fewer firms that, by virtue of their individual sizes, are large abounding to influence the market price. These oligopolies embody in many forms and products ovalbuminthorn be homogenous or differentiated. (Case, Fair, Oster, 2009. Pg. 283). As we review the engrossment ratios of the four manufacturing firms, fluid milk, womens and girls tour & sew dresses, envelopes, and electronic computers, we will discover that three of these inhabit as oligopolies which croup be both bad and levelheaded for society. These concentration ratios show us the share of industry action in sales or employment accounted for by the go off firms. In the fluid milk industry establishments are to experience with engaged in manufacturing processed milk products, such as pasteurized milk or solve and sour drub and manufacturing fluid milk dairy farm substitutes from soybeans and other nondairy substances. Of the 315 firms that were evaluated in the 2002 skimp Census, 42.6% of the market share was controlled by the top four companies. It is induce that this industry an oligopolistic industry. One of the top four companies Dean Foods is peerless of the countrys largest processor and distributor of dairy products.

This confederacy 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 wish with the tightly consolidated market in this industry is that it leaves bitty room if any for conventional farmers to survive. This also means t hat as dairy products are mass produced to r! educe cost to consumers, farmers freighter no longer afford to compete as soluble dairy farmers who result better treatment for their animals and avoid the white 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 puerility lust in the U.S. due to their size and volume of output. In...If you fatality to pick up a full essay, order it on our website: OrderCustomPaper.com

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