The Relationship between Concentration Rate and Efficiency of Business Companies
Authors of this article study the relationship between concentration rate and efficiency of business companies. Structural changes in the Russian manufacturing cause growth of concentration rates. The reasons for that growth are mostly practical and economical. Market results such as prices, costs, profits are affected by concentration rate. Quantitative studies of the Russian industries have indicated that profitability correlates with company size. High profit is based on scale saving effect or monopoly, that is the reason for companies and market share growth. Concentrated industries have better performance as large companies are more innovative and productive then smaller ones
Issue: 9, 2007
Series of issue: Humanities (Economics, Law)
Pages: 45 — 47
Downloads: 803