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Aluminum Industry In 1994
Essay specific features
Written by:
Joseph W
Date added:
January 3, 2015
Level:
University
Grade:
A
No of pages / words:
6 / 1540
Was viewed:
9984 times
Rating of current essay:
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)...
displayed 300 characters
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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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