Oligopoly

Based on the 2002 Economic Census, the assiduousness proportionalitys for the following industries: liquid milk (311511) is 42.6%, womens and girls excuse & tailor dresses (315233) is 21.6%, envelopes (322232) is 51.1% and electronic computers (334111) is 75.5%. The four-firm tightness ratios is calculated by adding the total hoggish gross revenue of the top four firms in the fabrication and single out by the total. In the text book it defines the concentration ratio as The sh ar of application output in sales or employment accounted for by the top firms (Case, ordinary & Oster, 2009 p. 285). employ the concentration ratio differentiate the sales amid industries. The industry that is characterized by a high level of rivalry in consonance to the data retrieved from the 2002 Economic Census would be the womens and girls cut and sew dress manufacturing, because of its concentration ratio of 21.6%. Having the last concentration ratio would mean that in that location argon a handle of competition and a lot of sputter to stay inside the marketplace.

The monopolistic competitors would see an opportunity to collapse the market ground on this industry low sales and that also creates more than competition. Firms that differentiate their products in industries with many producers and absolve entry are called monopolistic competitors. (Case, Fair & Oster, 2009 p. 262). Both oligopoly and monopolistic have competition involved but the difference between these two is that maven has a small number of cock-a-hoop firms and the other has a large number of small firms. An oligopoly is an ind ustry in which there is a small number of fi! rms, to each one large to the full to have an impact on the market price of its outputs (Case, Fair & Oster, 2009 p. 262).If you want to get a full essay, order it on our website: BestEssayCheap.com

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