Question

There are several Oligopolies in the US. Monopolies are illegal but Oligopolies are not.

Give some examples of oligopolies in the US, compare them, and explain why they are not regulated.

Use economic definitions in your response.

Define and name a Duopoly, are they a Monopoly and why they are or are not.

Explain what a Cartel is. Why are they not illegal broadly speaking? Again, define as only in Economic Terms.  

please answer those questions

Answer 1

1. Oligopolies are market structures which are dominated and controlled by a few large firms. These markets have high barriers to entry and operate for profit maximization.

Example: Automobile industry in US

It is dominated by Ford, GMC and Fiat

As compared to monopoly, oligopolies have more than one seller in the market.

These markets are not regulated because it is believed that too much regulation in this market would stifle up competition and demotivate firms to engage in R&D. This would lead to markets becoming less technologically advanced and thus leading to lower efficiency

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A duopoly is controlled by 2 suppliers in the market while a monopoly has just one supplier.

They are not monopoly because the former has more than one seller in the market

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Cartel is an informal agreement among firms in the oligopoly market where in the firms mutually agree to coordinate their price and output decisions in order to maximize profits

They are not illegal broadly speaking, because broadly, the firms funcityas one single firm trying to maximize profits derived from the industry and thus try to operate as a monopoly.