ECO 204 All Assignments

Week 3

Assignment Manufacturing Industry Evaluation

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.

Week 5

Assignment Final Paper

Assume that the potato chip industry in the Northwest in 2007 was competitively structured and in long-run competitive equilibrium; firms were earning a normal rate of return and were competing in a monopolistically competitive market structure. In 2008, two smart lawyers quietly bought up all the firms and began operations as a monopoly called Wonks. To operate efficiently, Wonks hired a management consulting firm, which estimated a different long-run competitive equilibrium.

Given that the new company is now run as a monopoly, how will this benefit the stakeholders involved, such as the government, businesses, and consumers?

Given the transition from a monopolistically competitive firm to a monopoly, what will be the changes with regard to prices and output in both of these market structures?

What market structure is more beneficial for Wonks to operate in, and will this be the same market structure that will benefit consumers? Explain the reasoning behind your answers.