0
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
From OPEC.org:
The Organization of the Petroleum Exporting Countries (OPEC) is a permanent, intergovernmental Organization, created at the Baghdad Conference on September 10-14, 1960, by Iran, Iraq, Kuwait, Saudi Arabia and Venezuela.
How are the members selected in the OPEC?
Members of the Organization of the Petroleum Exporting Countries (OPEC) are sovereign nations that produce significant amounts of oil and share a common interest in coordinating and unifying petroleum policies. Membership is voluntary, and countries must apply for membership and be accepted by existing members. The criteria often include the country’s oil production capacity and its willingness to cooperate with OPEC’s goals. Currently, OPEC has a defined membership, and new members are considered based on their alignment with the organization's objectives.
Why is amazon a oligopoly market?
Amazon operates in an oligopoly market due to its dominant position in the e-commerce sector, where a few large firms control a significant share of the market. It faces limited competition from other major players like Walmart and Alibaba, which also have substantial resources and market influence. This concentration allows Amazon to exert considerable pricing power and influence over suppliers and consumers. Additionally, barriers to entry, such as high startup costs and economies of scale, further reinforce its oligopolistic status.
What company operating under condition of monopoly and oligopoly?
There may be a case for government, the welfare consequences of monopoly, duopoly or oligopoly.
The "Organization of Petroleum Exporting Countries" (OPEC) includes most of the world's major oil-exporting countries. By agreeing to limit their respective production levels, they maintain a higher price for their oil worldwide. While this extends the life of their domestic fields, and provides substantial income, it is a semi-monopoly that limits the affordability of petroleum in many of the world's developing countries. There is no international law that prohibits such cartels, as would apply within many countries.
(In the past, such attempts to control the worldwide production of raw materials would have almost certainly led to conquest of these areas by militarily stronger countries.)
Can monopolies become oligopolies?
If you have a monopoly, why would you want an oligopoly? You make more profit alone.
Is Shell Oil Company a oligopoly?
Yes, competitors are 'a few' being Exxon Mobil, BP etc. Oligopolies usually have high barriers to entry, have strong control over pricing, some control over price, and advertise aggressively. They also have a 'kinked' demand curve.
How do economist determine whether a market is an oligopoly?
A market is an oligopoly when a small number of sellers dominate a market or industry. Economists use a set of criteria to determine whether a market form is an oligopoly. These criteria include profit maximization conditions, ability to set price, high barriers to market entry, a small number of firms, long-run abnormal profits, product differentiation, perfect knowledge of cost and demand functions, interdependence on other firms' marketing strategies, and non-price competition.
1. Cartel: A cartel is when a group of firms decide to agree on leveling out the output. In some countries, output supply needed might be more than other countries or more than the specified output level. Thus, it might be a problem in some countries.
2. Collusions: Collusions are informal agreements done between firms in an oligopoly to ristrict competition. Thus, new firms my not be able to set up and this may cause dificiency of choice for customers.
What are the feature of oligopoly?
Features of Oligopoly.
The important features of oligopoly are given as follow :
1. Few Sellers
2. Homogeneous or differentiated products
3. Entry is possible but difficult
4. Interdependence
5. Uncertainty
6. Indeterminateness
7. Price rigidity
8. Non price competition
9. Tendency to form cartel
10. Close substitutes
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 )
