An Oligopoly Competitive Market

An Oligopoly Competitive Market One example of a combative trade structure we encounter in business would be an oligopoly. An oligopoly, correspond to Case, Fair, and Oster, is an manufacture dominated by a few stanchs that, by virtue of their individual sizes, be large decorous to bring the commercialize price (p. 283). One way to baffle put whether a market is oligopoly in nature would be to utilize the engrossment ratio information provided within the unite States Census delegacys Economic Census. Utilizing the Economic Census, a market stub be said to be an oligopoly combative market if the surpass four firms within an industry turn back at least 75 pct of the market dispense. To besot a firm grasp on how this theory workings I lead study the slow-wittedness ratios of the four industries: silvery milk (311511), womens and little girls let set down & cut dresses (315233), envelopes (322232), and electronic computers (334111), to determine wheth er their agonistic markets would be considered an oligopoly, and contemplate whether an oligopoly is always bad for society. Utilizing concentration ratios we find that the make it four firms operating within the fluid milk industry (311511), control 42.2 percent, and envelopes (322232) with 51.1 percent of their respective market shares.

Although market shares of 51 and 42 percent are large, they spillway below 75 percent which is not enough to abide the top firms to function pricing within the market, or to be considered as an oligopoly competitive market structure. Fluid milk and envelopes are such homogen ous products that if the top 4 companies att! empted to cause a price increase they would see their customers choosing other sources for their product. The top 4 firms, with a fairly high share of the market would likely vie more on a strategical level then(prenominal) attempting to sell at a reject price. The top 4 firms within the womens and girls cut & sew dresses industry (315233) with a market share of only 13.2 percent would not be considered...If you want to get a honest essay, order it on our website: OrderCustomPaper.com

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