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Oligopoly
An oligopoly is a market dominated by a few large suppliers. The degree of market concentration is very high, firms within an oligopoly produce branded products and there are also barriers to entry. There are collusive and non-collusive oligopolies.
327 Questions
What forms can non-price competition take in monopolistic competition and oligopoly?
they take place in those areas
Why does supernormal profit attract entry of new firms?
Supernormal profit attracts entry of new firms because knowledge is everywhere and also the main aim of any producers is to make profit.
Let say for example that there is a market where one producer make a superprofit otherwise said his revenue is greater than his cost of production -in other words after selling his products- his revenue allow him to pay both fixed and variable costs and save an extra money.
This situation will definetely compell another producer who is interested by the same market to enter in (because of the existence of the information which is free to obtain and available to anyone)and also try to make his own supernormal profit. and theinformation will therefore flow from on producer to another and so on.
Remember the competition market states that there are no barriers to enter and exit from the market, outputs are homogeneous, no dicrimination between buyers and sellers.
The competition market is only a Theoretical Ideal! the reality is completely different
What is the shape of offer curve and what is the reason behind this particular shape of offer curve?
Good day, I would like to know the relevance of OFFER CURVE to applied microeconomics.
The organization has maintained its headquarters in Vienna since 1965,
What are some examples of oligopolies in the US?
Auto Industry, Airline Industry, Soft Drink ( Pepsi, Coke, Cadbury-Shweppes )
What example illustrates an oligopoly market structure in early American history?
An example of an oligopoly market structure in early American history can be seen in the railroad industry during the late 19th century. A few major companies, such as the Pennsylvania Railroad and the Union Pacific Railroad, dominated the market, controlling a significant portion of railroad transportation and freight services. Their control allowed these companies to influence pricing and service standards, leading to competition primarily based on factors other than price, such as speed and reliability. This concentration of power exemplifies the characteristics of an oligopoly, where a small number of firms hold substantial market control.
How does OPEC help the global economy?
OPEC, the Organization of the Petroleum Exporting Countries, helps the global economy by coordinating and stabilizing oil production among its member countries, which contributes to stable oil prices. By managing supply, OPEC aims to prevent extreme fluctuations in oil prices that can lead to economic instability. This stability benefits both oil-exporting nations and import-dependent economies, fostering predictable energy costs and promoting growth. Additionally, OPEC's policies can influence global energy security and investment in alternative energy sources.
In the economic term oligopoly the word part olig-Probably means?
Oh, dude, "olig" in oligopoly probably means "few" or "small." So, like, in an oligopoly, you've got just a few big players dominating the market, kind of like when you and your friends are the only ones who show up to a party. It's all about that small group calling the shots and making the big bucks.
In oligopoly markets, a few firms dominate, leading to interdependence in decision-making. Nonprice competition, such as product differentiation, advertising, and customer service, becomes more appealing as firms seek to gain market share without triggering price wars that could erode profits. Additionally, because firms often have similar cost structures and market power, they may prefer to compete on attributes other than price to maintain stable profit margins. Consequently, nonprice competition is more prevalent under oligopoly conditions than price competition.
Why is ford motor company oligopoly?
Not hardly. They have stiff competition from many other auto companies.
