Manufacturing Industry Evaluation

In economics, oligopolies are industries dominated by a fewer firms that, by virtue of their individual sizes, are large plenteous to influence the market price. These oligopolies embody in many forms and products whitethorn be homogenous or differentiated. (Case, Fair, Oster, 2009. Pg. 283). As we review the preoccupation ratios of the four manufacturing firms, fluid milk, womens and girls crook & sew dresses, envelopes, and electronic computers, we will discover that three of these exist as oligopolies which croup be both bad and levelheaded for society. These concentration ratios show us the share of industry production in sales or employment accounted for by the assoil firms.

In the fluid milk industry establishments are to begin with engaged in manufacturing processed milk products, such as pasteurized milk or solve and sour cream and manufacturing fluid milk dairy substitutes from soybeans and other nondairy substances. Of the 315 firms that were evaluated in the 2002 stinting Census, 42.6% of the market share was controlled by the top four companies. It is piddle 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 worry with the tightly consolidated market in this industry is that it leaves teensy room if any for conventional farmers to survive. This also means that as dairy products are mass produced to reduce cost to consumers, farmers can no longer afford to compete as answerable 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 childhood lust in the U.S. due to their size and volume of output.

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