Manufacturing Industry Evaluation

In economics, oligopolies are industries dominated by a fewer firms that, by virtue of their individual sizes, are large robust to influence the market price. These oligopolies embody in many forms and products blanchedthorn 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 go & sew dresses, envelopes, and electronic computers, we will discover that three of these make up as oligopolies which croup be both bad and sound for society. These concentration ratios show us the share of industry performance in sales or employment accounted for by the label firms. In the fluid milk industry establishments are to incur with engaged in manufacturing processed milk products, such as pasteurized milk or solve and sour skim over and manufacturing fluid milk dairy substitutes from soybeans and other nondairy substances. Of the 315 firms that wer e evaluated in the 2002 skimp Census, 42.6% of the market share was controlled by the top four companies. It is clear that this industry an oligopolistic industry. One of the top four companies Dean Foods is matchless of the countrys largest processor and distributor of dairy products.

This confederation 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 commove with the tightly consolidated market in this industry is that it leaves teentsy room if any for conventional farmers to survive. This also means that as d airy products are mass produced to reduce co! st to consumers, farmers hatful no longer afford to compete as answer commensurate 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 pauperization to pick up a full essay, order it on our website: OrderCustomPaper.com

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