As you learned in this chapter, economists sometimes use concentration ratios to evaluate whether industries are oligopolies. In this application, 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 Concentration Ratios in Manufacturing, 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 written in APA format as outlined in the approved APA style guide.
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.