Manufacturing Industry Evaluation
Economists sometimes use concentration ratios to evaluate
whether...

Question

Manufacturing Industry Evaluation
Economists sometimes use concentration ratios to evaluate 
whether industries are oligopolies. In this assignment, you will make your own 
determination using the most recent data available. You will also discuss the 
merits and disadvantages of oligopolies in light of your research.

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.

Find the four-firm concentration ratios for the following 
industries: fluid milk XXXXXXXXXX), women's and girl’s cut & sew dresses 
(315233), envelopes XXXXXXXXXX), and electronic computers XXXXXXXXXX).
Assess the level of competition for each of the four 
industries.
Define oligopolies and identify which of the listed industries 
qualify as oligopolies.
Describe why these industries qualify as oligopolies and 
identify some of the firms that operate in the listed industries.
Discuss whether or not oligopolies are always bad for society, 
using examples from the firms you described.

David · Accepted Answer

Concentration Ratios in Manufacturing Industry                                                                            1
Concentration Ratios in Manufacturing Industry 
Course Name:
Date: 
Instructor’s Name:
Concentration Ratios in Manufacturing Industry                                                                            2
Concentration ratios and level of competition 
The four-firm concentration ratio for the required industry has been represented in the 
following table; 
Industry  4-firm Concentration Ratio 
Fluid milk (311511) 46.20% 
Women's and girl’s cut & sew dresses (315233) 18.20% 
Envelopes (322232) 48.60% 
Electronic computers (334111) 75.50%
The four-firm concentration ratio is defined as the sum of market share of 4-largest firms 
in an industry. In other words, it denotes the percentage of market share held four largest firms of 
an industry.  Higher is the concentration ratio, lower will be competition in the concerned 
industry. Specifically, we use following criteria to define level of competition in an industry 
using concentration ratio; 
Four-firm concentration ratio Level of competition 
0% Perfect competition; very high level of competition 
0%-50% 
Industry with high level of competition; ranges from perfect competition to 
oligopoly 
50%-80% Oligopoly industry;

Manufacturing Industry Evaluation Economists sometimes use concentration ratios to evaluate whether industries are oligopolies. In this assignment, you will make your own determination using the most...

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