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.
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.