The Research Of Optimal Point Of Industrial Concentration According To The Eiffciency Standards Of Maximal Industry Profit And Maximal Social Welfare

The issue of industrial concentration is an essential field the industrial organizationtheory researches on, which concerns the number and the scale of firms in an industry. Underthe situation of specific firm scale, the number of firms in an industry influences theallocation of the resources in the whole industry by affecting the market structure. There aremany efficiency standards to evaluate the industrial concentration, this paper chooses themaximal industry profit and maximal social welfare as two main efficiency standards. Thereason why I choose these tow efficiency standards is that both of the two are more practical,the maximal industry profit is valuable to the industry which could be seen as the producer,maximal social welfare is valuable to the whole consumer group.The paper starts from micro firm and ends with macro industry, deducing the expressionof general optimal point of industrial concentration according to the efficiency standards ofthe maximal industry profit and maximal social welfare by integrating the simulate marketdemand curve with firm cost curve. Fundamentally, the question this paper expect to resolveis that: the factories a industry has and the total quantity of output of the whole industryreaches to what special level could ensure the industrial concentration the most Optimal,proceed to the next step realize the maximal industry profit and maximal social welfare. Inthe part of demonstration, take the steel industry as a sample, simulating the industrial marketdemand carve and the firm cost curve to calculate the optimal number and correspondingoutput of steel industry in our country, and then give advices on the adjustment of theoptimization of market structure. There are five chapters whose contents are as follows:Chapter One—Introduction：Elaborating the background both at home and abroad、thepurpose、the sense、the train of thoughts、 the method of this paper comprehensively, andcomment on the research achievements that the scholars achieved, explain the innovation ofthis paper briefly. Chapter Two—Industrial Concentration and The Optimal Point of IndustrialConcentration: Introduce the definition、measurable index、and corresponding theory ofindustrial concentration systematically, then ascertain the optimal point of industrialconcentration.Chapter Three—The Process to Infer the Model of Optimal Point of IndustrialConcentration: Inferring and explaining the expression of optimal point of industrialconcentration based on the theory of microeconomics and macroeconomics according to theefficiency standards of maximal industry profit and maximal social welfare.Chapter Four—The Empirical Analysis of Optimal Point of Industrial Concentration ofSteel Industry of2010In Our Country. Calculating the optimal point of industrialconcentration of steel industry of2010in our country by simulating the industrial marketdemand carve and the firm’s average cost curve, analyzing the result.Chapter Five—Conclusions and Advices: Draw conclusions and offer policy advicesbased on the analysis of the first four chapters.