Search results
Results from the WOW.Com Content Network
An oligopoly (from Ancient Greek ὀλίγος (olígos) 'few' and πωλέω (pōléō) 'to sell') is a market in which pricing control lies in the hands of a few sellers. [ 1 ] [ 2 ] As a result of their significant market power, firms in oligopolistic markets can influence prices through manipulating the supply function .
Oligopoly: The number of enterprises is small, entry and exit from the market are restricted, product attributes are different, and the demand curve is downward sloping and relatively inelastic. Oligopolies are usually found in industries in which initial capital requirements are high and existing companies have strong foothold in market share.
A monopoly has at least one of these five characteristics: Profit maximizer: monopolists will choose the price or output to maximise profits at where MC=MR.This output will be somewhere over the price range, where demand is price elastic. If the total revenue is higher than total costs, the monopolists will make abnormal profits.
A duopoly (from Greek δύο, duo ' two '; and πωλεῖν, polein ' to sell ') is a type of oligopoly where two firms have dominant or exclusive control over a market, and most (if not all) of the competition within that market occurs directly between them. Duopoly is the most commonly studied form of oligopoly due to its simplicity.
Characteristics of "imperfect" market structures Market Structure Number of buyers and sellers Degree of product differentiation Degree of control over price Monopolistic Competition: Many buyers and sellers: Some: Some Oligopoly: Few sellers and many buyers: Some: Some Duopoly: Two sellers and many buyers: Complete: Complete Monopoly: One ...
The more usual market format is oligopoly: several firms, each of which is large enough so that a change in their price will affect the other firms' price, except for those with monopolies. When looking at oligopolies, the problem of interdependence arises.
Get AOL Mail for FREE! Manage your email like never before with travel, photo & document views. Personalize your inbox with themes & tabs. You've Got Mail!
As a result, industries with high barriers to entry often contain a monopoly or oligopoly with dominant power in terms of price. This dominance allows them to charge a higher price or, if other firms join the market, to use their market power and cash flow to lower prices, beating out the new competition. [10]