Manufacturing Industry Evaluation

Manufacturing Industry Evaluation A sm completely arrive of relatively macroscopic firms dominate the merchandise which creates a market structure which is an oligopoly. Oligopoly is delimit as an persistence reign by few firms that, by virtue of their individual sizes atomic number 18 spacious enough to stoop the market price (Case, Fair, & Oster, 2009). These large firms dominated the market by selling identical products. Products are a commodity when all the items produced are identical, no matter who produces the item. A few ascendant firms, which have influence on the market price, is categorized as an oligopoly (Case, Fair, & Oster, 2009). Markets can be dominated by as half-size as two firms or up to twenty and simmer down be considered an oligopoly. If there are less than two firms, it would be a monopoly. When the number of firms increase, simply the number is not known, the oligopoly becomes a monopolistic competition. Fluid take out United States | 31 1511 | Fluid Milk Manufacturing |: All companies | 2007 | 280 | 33,547,992 | 100.0 | X |. The good-tempered draw industry displayed notable numbers in 2007. The basis for the remarkable numbers was because 280 companies generated close $34 million dollars of profit.

The mentally ill milk industry produces products much(prenominal) as milk, butter, cheese, frozen dairy products, milk powders, and several more(prenominal) dairy products. Less than 28 percent of the milk fork over is processed into fluid milk and lap products (AgMRC, 2012). This industry would be an oligopoly. Do to the fact that there are 280 fluid milk companies across the nation whic! h means that however a really few of the companies would be able to drag down the market. This gives these companies more manoeuvre of the pricing on a internal scale. Another government agency to show that this is an oligopoly is to look at it on a topical anaesthetic scale because all(prenominal) region has a limited follow of producers of fluid milk. The minginess ratio of the fluid milk industry is based on the largest of the four firms in the industry. In the fluid milk...If you want to get a full essay, order it on our website: OrderCustomPaper.com

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