Industrilazation of a place depends upon its
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Answer:
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Explanation:
The infrastructure of an industry depends on the following: i) Geographical factors: These include raw materials, power supply, water, transport, labour, market and climate. ii) Commercial factors: These include capital, bank and credit facilities, Government policies and organisational efficiency.
Answer:
the answer is the followingIndustrial concentration means sellers concentration. In other words, in a market some big firms have dominance over production and sales. The limit of this industrial concentration depends upon two main factors, firstly number of active firms in the given market, secondly, quantity of demand fulfilled by a firm out of the total market demand. If in a market number of firms is limited, the size of firms will be relatively big and a big firm will have the control over a large portion of total supply.
This situation is known as high quantity of seller (or industrial) concentration. High class industrial concentration depends upon the market power of every firm. Market power means the capacity of a firm or seller to influence the price of a product or commodity. In the perfect competitive market situation this market power is zero, which means the industrial concentration is zero. But more we move towards the monopoly market more the industrial concentration.
2. Methods of Measurement of Seller Concentration:
It is important to measure industrial concentration for many reasons. Firstly, one of the characteristics of the perfect competition is that there is large number of firms in the industry. Lesser the number of firms more is the concentration. For example in 1975, there were 50 firms in the Plastic and Synthetic Resin industry in U.K. Out of these 422 firms had a net production of 10% while the biggest firms had that of 40%.
Hence the market power of such firms which are less in number but big in size is more than those which are more in number but less in size. Secondly, it is necessary to measure industrial concentration because it indicates the ratio of concentration. For example Concentration Ratio (CR) 53.6% indicates that the biggest five firms produce more than 50% in this industry.