--%>
Assignment Help - homework help

Define Oligopoly and its characteristics

Explain the term Oligopoly? Also explain its Characteristics?

E

Expert

Verified

A market where the supply is controlled by a small group of companies called as Oligopoly . In this situation, the actions of one company will have a material effect on the entire market for a product.

Characteristics of an Oligopoly are:

i) Substantial barriers to entry

ii) Market dominated by a few large firms

iii) Different products

iv) Price rigidityAn example of this type of monopoly would be the corporations Visa and MasterCard. These are in the business of card securities and hold major market share. However, it could be noted that Visa holds more of a pure monopoly status; MasterCard does have a high level of control to create a competitive market situation.

   Related Questions in Microeconomics

  • Q : Equilibrium price of commodity Describe

    Describe why the equilibrium price of commodity is determined at the level of output at which its demand equavalents its supply.

    		•
  • Q : Trends in Income Distribution The year

    The year in that a long-run trend towards greater equality within the U.S. income distribution was reversed, therefore income since then has become less equally distributed, it was roughly: (w) 1945. (x) 1960. (y) 1975. (z) 1990.

    Q : Income effect dominating substitution

    The personal supply of labor is characterized by the income effect which dominates the substitution effect if: (1) Trina retires to beach condo subsequent to working for the city for 42-years. (2) Members of a rock band give up touring for a year subsequent to their s

    		•
  • Q : Problem on organizing the business The

    The individual who wants to begin up a business, however who not want to risk in losing personal property if the business fails, must organizes the business as: (1) Sole proprietorship. (2) Partnership. (3) Corporation. (4) Unlimited partnership.

    Q : Price above marginal cost to minimizes

    When a monopolist which does not price discriminate maximizes profit and its economic profit is zero, this will charge a price: (w) equal to marginal cost and will be at the minimum average cost. (x) equal to marginal cost, but will p

    		•
  • Q : Minimum Wage Laws-Group least likely to

    Can someone help me in finding out the right answer from the given options. The group which is least likely to be helped by the minimum wage law is: (1) African-American teenagers. (2) Skilled industrial workers. (3) Members of the unions. (4) Experienced construction

    		•
  • Q : Types of Cost Types of Cost : A) Direct

    Types of Cost: A) Direct costs: clearly chargeable to a work package: labour materials equipment other

    Q : Preference current consumption over

    When the preference for current consumption over future consumption weakens, in that case the: (w) interest rate rises. (x) interest rate falls. (y) present value of future income falls. (z) equilibrium level of investment falls.

    		•
  • Q : Operating analytic Time of

    When this purely-competitive firm makes output level Q, this is operating within the: (i) technological long run. (ii) long run. (iii) short run. (iv) shut down period. (v) boom period of the business cycle.

  • Q : Example of bilateral monopoly The most

    The most excellent example of bilateral monopoly from the given list would be the condition of negotiations among: (i) U.S. Immigration Service and undocumented workers from Mexico. (ii) Fast food franchises and workers who are high-school dropouts. (

    		•