Manufacturing Evaluation Essay

Brandy Johnson

MANUFACTURING INDUSTRY EVALUATION 1

ECO204: Principles of Microeconomics (BAK1213A)

Instructor:  Felix Telado

04/13/2012

Manufacturing Industry Evaluation Page 1
Economics uses concentration ratios to determine whether firms in a given industry are oligopolies. This research aims at determining oligopoly using the concentration ratio in the following four industries in the United States which are fluid milk, women’s and girls cut and sew dresses, envelopes and electronic computers. Using statistics from the US census bureau, economic census (2002), I will able to answer the following questions;
  a) Find   the   four- firm   concentration   ratios   for   the   following   industries:   fluid   milk   (311511),     women's   and   girl's   cut   &   sew   dresses (315233),   envelopes (322232),   electronic   computers (334111). 
  b) Which industries are characterized by a high level of competition? Which industries are characterized by a low level of competition? Define oligopolies and identify which of the listed industries qualify as oligopolies.
  c) Name and describe some of the firms that operate in the listed industries that qualify as oligopolies.
  d) Discuss   whether   or   not   oligopolies   are   always   bad   for   society, using   examples   from   the   firms   you   described?
According   to   the   US census   bureau, economic   census(2002) , the   four   firm   concentration   ratio of: Fluid milk (311511),   has   a   concentration   ratio   of   42.6%.,Women's   and   girl's   cut   &   sew   dresses(315233)   has   a   concentration   ratio   of   21.6%, Envelopes (322232), has a concentration   ratio   of   51.1%. and Electronic computers (334111), has a concentration ratio of 75.5%.

Manufacturing Industry Evaluation Page 2
      According   to   the   US census   bureau, economic   census(2002) , Women's   and   girl's   cut   &   sew   dresses(315233), which   has   a   concentration   ratio   of   21.6%   has   high   competition   because   the 4...