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Essay

Aluminum Industry In 1994

Essay specific features

 

Issue:

Business

 

Written by:

Joseph W

 

Date added:

January 3, 2015

 

Level:

University

 

Grade:

A

 

No of pages / words:

6 / 1540

 

Was viewed:

9979 times

 

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Essay content:

The industry is characterized by a large number of competing firms – the largest of which has only 4.1% of total industry capacity; homogeneous, commodity-type products and low-cost entry and exit into and out of the industry (assuming capital is available where returns are greater than cost of entry)...
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Within the industry, market prices are established via a commodities exchange (the London Metal Exchange, or LME) and individual firms have little ability to set market prices. In a perfectly competitive industry social welfare is maximized – due largely to the lack of product differentiation and the number of competitors, while expected firm performance is normal...
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