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Manufacturing Industry Essay

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Manufacturing Industry Evaluation
Adam M. Perone
ECO 204: Principles of Microeconomics
Professor Charles Fanning
February 26, 2012


                                          Manufacturing Industry Evaluation

Go to the Concentration Ratios in Manufacturing  (http://www.census.gov/epcd/www/concentration.html) page at the website of the U.S. Census Bureau, click on the PDF of the most recent Economic Census for Manufacturing (NAICS 31-33), and answer the following questions in a two- to three- page paper formatted according to APA style.
      1. Find the four-firm concentration ratios for the following industries: fluid milk (311511), women's and girl’s cut & sew dresses (315233), envelopes (322232), and electronic computers (334111).
      2. Assess the level of competition for each of the four industries.
      3. Define oligopolies and identify which of the listed industries qualify as oligopolies.
      4. Describe why these industries qualify as oligopolies and identify some of the firms that operate in the listed industries.
      5. Discuss whether or not oligopolies are always bad for society, using examples from the firms you described.

Fluid Milk -
United States | 311511 | Fluid milk manufacturing | : All companies | 2007 | 280 | 33,547,992 | 100.0 | X |
2007 showcased impressive numbers for the fluid milk industry as 280 companies brought in nearly $34 million dollars worth of profit. As you walk through any supermarket, you can find a wide array of dairy products, especially milk to choose from. I believe that this industry represents an oligopoly. There are 280 fluid milk companies across the nation which is a small number showcasing that only a few companies could enter this market which gives them better control of pricing on a national scale. We can also see that they are oligopolies on a local scale as each region has a limited amount of fluid milk producers. Fluid milk is not a...

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