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| Topic: |
Business
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| Number of pages / Number of words: |
3 / 731 |
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Individual firms produce larger quantities, which, because of economies of scale in production, lead to a reduction in unit-production costs. This means there is an improvement in productive efficiency.
If the industry has 20 firms but the CR for the industry is 80% instead of 30%, from a market structure standpoint, if the four firm concentration ratio is greater than 40% the market is an oligopoly...
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Oligopolies pertain to the nation as a whole, although relevant markets may be localized, the data are for U.S. products?imports are excluded.
An industries concentration ratio is dependent on the product or service; the following markets will vie for profits based on the scarcity of resources and availability of costs...
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