I. Introduction
This paper exit explore how we can usance immersion ratios to evaluate the market structure of particular industries to realize if they possess the characteristics of an oligopoly. An oligopoly is an industry dominated by a a couple of(prenominal) firms that, by virtue of their individual sizes, are large comely to influence the market price (Case, Fair, & Oster, 2009, p. 283). For my assessment, I will specifically review the four-firm parsimony ratios as calculated based on market shares of the largest firms in the industry. The data customd was collected by the U.S. Census Bureau during the 2002 census, and I have provided a disconcert of the consolidated data in the appendix of this paper for nevertheless review. To ensure consistency in my review, I will use standard concentration take aims to determine the take aim of concentration, and to determine if that level rises to the level of a market structure in an oligopoly. Because there is no distinct set of concentration ratios are universally used to separate one market structure from the other, I will separate concentration levels into three categories; low, medium, and high. A concentration level of 0%-49% will be interpreted as a low concentration level not collision the standards of an oligopoly.
A concentration level of 50%-74% will be interpreted as a medium concentration level which is approaching the standards of an oligopoly, and a concentration level of 75%-100% will be interpreted as a high concentration level therefore falling into the category of an oligopoly. In conjunction with concentration ratios, I will also review the Herfindahl-Hirschman office (HHI) as an supplementary data point to help in my assessment. HHI is used by the Justice Department in ascertain whether or not to challenge an industry merger. If the index is among 1,000 and 1,800, the department will challenge any merger that would annex the index by over 100 points (Case, Fair, & Oster, 2009, p. 298)....If you want to pee a full essay, order it on our website: Ordercustompaper.com
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