Minority rule[ edit ] The exclusive consolidation of power by a dominant religious or ethnic minority has also been described as a form of oligarchy. Migration to cities will likely see the Republican Party's hold over the Senate strengthen in subsequent elections,  despite an expected demographic shift to a majority-minority population by
Tendency to form cartel Close substitutes 1 Small number of sellers: Conceptually, however, the number of sellers is so small and the market share of each firm is so large that a single firm can influence the market price and business strategy of the rival firms Interdependence of.
Since the number of firms in the industry is small, the business strategy of each firm in respect of pricing, advertising, product modification is closely watched by the rival firms. Thus under oligopoly a firm not only considers the market demand for its product but also the reactions of other firms in the industry.
No firm can fail to take into account the reaction of other firms to its price and output policies. There is, therefore, a good deal of interdependences of the firm under oligopoly.
In view of this firms have to incur a great deal on advertisement and other measures of sale promotion. Thus advertising and selling cost play a great role in the oligopolistic market structure.
Under perfect competition and monopoly expenditure on advertisement and other measures is unnecessary. But such expenditure is the life-blood of an oligopolistic firm. In case of perfect competition, monopoly and monopolistic competition, the business firms are assumed to behave in such a way as to maximize their profits.
The profit-maximizing behaviour on his part may not be valid. The firms under oligopoly are interdependent as they are in a group. Mutual interdependence creates uncertainty for all the firms. No firm can predict the consequence of its price-output policy.
Under oligopoly a firm cannot assume that its rivals will keep their price unchanged if he makes charge in its own price. As a result, the demand curve facing an oligopolistic firm losses its determinateness. Under oligopoly with product differentiation each firm controls a large part of the market by producing differentiated product.
In such a case it acts in its sphere as a monopolist in lining price and output. Prices lend to be rigid and sticky.
If any firm makes a price-cut it is immediately retaliated by the rival firms by the same practice of price-cut. There occurs a price-war in the oligopolistic condition.
The net result will be price -finite or price-rigidity in the oligopolistic condition. The most noted entry barriers are: Barriers to entry are the key characteristic that separates oligopoly from monopolistic competition on the continuum of market structures.
With few if any barriers to entry, firms can enter a monopolistically competitive industry when existing firms receive economic profit. This diminishes the market control of any given firm. However, with substantial entry barriers found in oligopoly, firms cannot enter the industry as easily and thus existing firms maintain greater market control.
If the firms produce a homogenous product like cement or steel the industry is called pure or perfect oligopoly. If the firms produce a differentiated product like automobile, the industry is called differentiated or imperfect oligopoly. Some firms may be very large and others may be small.
Under oligopoly, the number of seller is so small that any move by any one seller immediately, affects the rival sellers. As a result, each firm keeps a close watch on the activities of the rivals firms and prepare itself to counter it.
To an oligopolist, business is a life of constant struggle as market conditions necessitate moves and counter moves. This kind of competition is unique and is not found in other type of markets. Oligopoly is therefore the highest form of competition. It is difficult to calculate the consequence of current economic change on the basis of facts already in existence.
So uncertainity prevails in oligopolistic market. Oligopoly Classification Oligopoly can be classified on different basis: Pure Versus Differentiated Oligopoly- Oligopoly is classified as pure or perfect and differentiated on the basis of product differentiation.Good Essays words ( pages) Essay about Market Supplies: Oligopoly - Oligopoly is a market structure in which only few firms are having control over market supply and since there are high barriers of entry and exit from the oligopoly market, the existing firms enjoy the monopoly kind position..
Oligopoly Essay. The term oligopoly designates a market form in which a few sellers dominate the market sector. This creates disequilibrium in the market, affecting both its efficiency and the entire society.
Essay # 2. Characteristics of Oligopoly: The notable characteristics of oligopoly are: 1.
Jean Tirole (born 9 August ) is a French professor of barnweddingvt.com focuses on industrial organization, game theory, banking and finance, and economics and barnweddingvt.com he was awarded the Nobel Memorial Prize in Economic Sciences for his analysis of market power and regulation. Here is a compilation of essays on ‘Oligopoly’ for class 9, 10, 11 and Find paragraphs, long and short essays on ‘Oligopoly’ especially written for school and college students. Essay # 2. Characteristics of Oligopoly: The notable characteristics of oligopoly are: 1. Price-Searching Behaviour: An oligopolist is neither a price-taker (like a competitor) nor a price-maker (like a monopolist). It is a price-searcher.
Price-Searching Behaviour: An oligopolist is neither a price-taker (like a competitor) nor a price-maker (like a monopolist). It is a price-searcher. Budgeting For a Family Vacation to Disney World - Disney World is a magical and fun place for a family of four.
The sound of excitement filling the air, kids jumping . There are various firms which lie between perfect competition and monopolist.
The two major of this are monopolistic competition and oligopoly. Monopolistic competition can be defined as a market structure which consists of a large number of relatively small firms competing with each other in terms.
Oligopoly Essays Words | 4 Pages.
Oligopoly is a market structure in which only a few sellers offer similar or identical products. It is an intermediate form of imperfect competition. OPEC is an epitome of Oligopoly. Features of Oligopoly: • Non Price Competition • Interdependent decision making • Entry Barriers If organizations.