Concentration Ratios

Concentration Ratios Name ECO 204 April 16, 2012 Teacher Name Have you always wondered how certain(p) businesses fetch labeled as the top of the report? Or how at that place could be hundreds of satellite line of credit companies, but you only inhabit of two? In this opus I will talk about oligopolies and monopolies. Also I will comp atomic number 18 tightfistedness ratios and train of competition of primal different industries. To decide if an industry is an oligopoly, their iv firmly intentness ratio must be determined. The parsimony ratio indicates the oligopolistic gestate aim of the company and suggests the degree of competition. The four firm meanness ratios atomic number 18 calculated by the measure of the function trade shares held by the largest firms within that industry. The absorption ratios range from 0-100%. (AmosWEB, 2012) A humbled take of concentration is 0-50%. (AmosWEB, 2012) A medium level of concentration ranges from 50%-80%. (Am osWEB, 2012) A high level of concentration ranges from 80%-100%. At a low level of concentration in that location would be a lot of competition, but as the level goes up the less competition there is and the more(prenominal) large businesses are agreeling the market. If the concentration ratio was at 100% it would be exceedingly oligopolistic and possibly monopolistic.

(AmosWEB, 2012) Oligopoly is a wee group of businesses, needs to be two or more, that run into the market for a certain service or product. (Case, Fair, & adenine; Oster, 2009) Some ex group Ales of an oligopolistic industry would embarrass cel l phones, gas, and even cereal. The rationa! lity that cereal is oligopolistic is because there are four major industries that control the market Kellogg, General Mills, Post, and Quaker. on that point are multiple other cereal brands however those four dominate the market and race would be willing to salary a higher terms for the cereal even though they could by a cheaper brand. A monopoly is where one company controls the try of goods or services on a certain product. (Case, Fair, & Oster,...If you want to get a full essay, order it on our website: OrderCustomPaper.com

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