Oligopolies Essay

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Oligopolies Oligopolies have specific characteristics that define them as such. These characteristics help determine the necessary level of competition required to stay competitive in the market. The specific industries that will be examined in this paper include fluid milk, women’s and girl’s cut & sew dresses, envelopes, and electronic computers. Each of the different industries has different levels of competition as well as different qualifications that make it an oligopoly. “An oligopoly is an industry dominated by a few firms that, by virtue of their individual sizes, are large enough to influence the market price” (Case, Fair, & Oster, 2009). There are four manufacturing industries that are being evaluated as to whether or not they are oligopolies. The first is the fluid milk industry, which includes processed milk products and fluid milk dairy substitutes. The second industry is women’s and girl’s cut & sew dresses; this includes all of the entities that are involved in the process of producing girl’s and women’s dresses from a purchased material. The third industry is the envelope manufacturing which includes all firms associated with manufacturing mailing envelopes as well as stationary. The fourth and final industry being examined as to whether or not it qualifies as an oligopoly is electronic computer manufacturing. This industry includes those firms that are involved in manufacturing and/or assembling electronic computers. Each of the four industries has different levels of competition. The use of the Five Forces Model is an easy way to organize and examine the level of competition. This model was “developed by Michael Porter of Harvard University…[and] helps us explain the relative profitability of an industry and identify in which area firm rivalry is likely to be most intense” (Case, Fair, & Oster, 2009). The model takes into

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