oligopoly

Expert Solution

An oligopoly is a market structure in which a few firms dominate. When a market is shared between a few firms, it is said to be highly concentrated. Although only a few firms dominate, it is possible that many small firms may also operate in the market.

Oligopolies may be identified using concentration ratios, which measure the proportion of total market share controlled by a given number of firms. When there is a high concentration ratio in an industry, economists tend to identify the industry as an oligopoly.

Types of Oligopoly:

Oligopoly is of two types:

(a) Pure Oligopoly:Here, the oligopolists sell practically homogeneous products. This type is found in steel, copper, cement petrol and a few other industries.

(b) Differential Oligopoly:

In such a case a few firms sell similar but not identical products under the same conditions. It is found in automobiles, tyres , electrical appliances, cigarettes, baby food and a few other industries.

Rahul Sunny answered 2 years ago

On pages 432-3, at the conclusion of the chapter on oligopoly, Krugman acknowledges that oligopoly is...

On pages 432-3, at the conclusion of the chapter on oligopoly, Krugman acknowledges that oligopoly is far more common than the other basic market structures, competition and monopoly. However, he makes the case that perfect competition should still be used to represent oligopolized markets. Please indicate if you agree with this assessment or not, but back up your conclusion--it's a legimiately debatable point.

In this assignment, you are going to find some examples of oligopoly. Oligopoly refers to an...

In this assignment, you are going to find some examples of oligopoly. Oligopoly refers to an industry which is dominated by just a few companies. An example of oligopoly is the industry of cell phone operating system, which is dominated by Android and IOS. In this assignment, find three examples of oligopoly, and briefly discuss the reasons why oligopoly arises in those industries.

The market for automobiles is an example of: Monopolistic competition. Duopoly. Differentiated oligopoly. Pure oligopoly. If...

The market for automobiles is an example of: Monopolistic competition. Duopoly. Differentiated oligopoly. Pure oligopoly. If an oligopolist is attempting to maximize revenue, it should produce a quantity of output where marginal revenue is: Greater than marginal cost. Equal to zero. Equal to marginal cost. None of the above is correct. If consumer income declines, then the demand for: Normal goods will increase. Inferior goods will increase. Substitute goods will increase. Complementary goods will increase. Which of the following market...

) Discuss Oligopoly. Consider some of the following questions in your response: What is an oligopoly?...

) Discuss Oligopoly. Consider some of the following questions in your response: What is an oligopoly? Why do oligopolies form? Do oligopolists enjoy market advantages not available to other firms? In your response please identify 2 or 3 industries characterized by oligopoly ... like the soft drink industry pictured above!

provide 5 examples of an oligopoly. please explain why each example is an oligopoly.

Cournot Oligopoly and Number of Firms In a Cournot oligopoly, each firm assumes that its rivals...

Cournot Oligopoly and Number of Firms In a Cournot oligopoly, each firm assumes that its rivals do not change their output based on the output that it produces. Illustration: A Cournot oligopoly has two firms, Y and Z. Y observes the market demand curve and the number of units that Z produces. It assumes that Z does not change its output regardless of the number of units that it (Y) produces, so chooses a production level that maximizes its profits....

a) What is meant by mutual interdependence in oligopoly markets? Explain why oligopoly firms are unlikely...

a) What is meant by mutual interdependence in oligopoly markets? Explain why oligopoly firms are unlikely to engage in price competition. b) Discuss one advantage and one disadvantage of a monopolistic market structure compared to a perfectly competitive market structure.

What is oligopoly? What is duopoly?

5) The goal of an oligopoly is to maximize

5) The goal of an oligopoly is to maximize A) Market share to achieve long-run economic profit. B) Short-run profit to achieve long-run market share. C) Profit in the short run and to minimize cost in the long run. D) Short-run profit to achieve long-run maximum revenue. 6) An increase in the price of butter is likely to cause: A) the demand for butter to stay the same. B) the demand for butter to increase. FACES C) the demand for margarine to increase. D) the demand...

1) Describe Oligopoly market 2) List and explain Pricing Strategies within Oligopoly market

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