A market structure in which a small number of firms has the large majority of market share. What are some examples of oligopoly? Nice work! You just studied 10 terms! Now up your study game with Learn mode.
The distinctive characteristic of an oligopolistic market structure is that there are recognizable interdependence among the decision of the firms. Factors that affect the ability of oligopolistic firms to successfully engage in cooperation include ( ).
Factors that affect the ability of oligopolistic firms to successfully engage in cooperation include ( ). Effective oligopolistic collusion is more likely to occur when customer orders are small, frequent, and received on a regular basis as compared with large orders that are received infrequently at irregular intervals.
an agreement that specifies that they will act in a way which reduces competition among them and raise the profits. 1) An oligopoly can adopt a competitive strategy. This advantage allows consumers to start planning ahead for needed expenses so that there is less debt for them to manage.
Some of the most notable oligopolies in the U.S. are in film and television production, recorded music, wireless carriers, and airlines. Since the 1980s, it has become more common for industries to be dominated by two or three firms. Merger agreements between major players have resulted in industry consolidation.
Answer and Explanation: The correct answer is a. The best illustration of an oligopoly is the automobile industry.
Petrol companies have the market structure of an oligopoly. An oligopoly is a market structure where there are a few dominant firms whose behavior is interdependent. There are a few dominant firms relative to market size, and they each command a large proportion of the market share, thus having strong monopoly power.
Which of the following characteristics differentiates a firm in an oligopolistic market from a firm in a perfectly competitive market? A firm in an oligopolistic market has to consider its own impact on price when making production decisions.
An oligopoly is a market structure in which many firms sell products that are similar but not identical. The market for crude oil is an example of an oligopolistic market.
One of the types of oligopoly is the perfect oligopoly. This occurs when the product is homogeneous in nature (e.g. Aluminum industry).
Petrol is a homogeneous product, hence the oligopoly is known to be pure or perfect. Theoretically only one firm can prevail, but since the firm's demand is not perfectly elastic, the firm has price control over its pricing policy.
Oligopoly markets are markets dominated by a small number of suppliers. They can be found in all countries and across a broad range of sectors. Some oligopoly markets are competitive, while others are significantly less so, or can at least appear that way.
Within a given geographic market, the market structure of gasoline retailing has been “described as a differentiated chain oligopoly” (Scherer, 1996, 124).
The correct option is b. An oligopolistic market structure has various characteristics, including high restrictions on entry and exit, high competition, and a few large firms dominating the market.
Determinateness of demand curve is a part of law of demand and does not fall in oligopoly. Hence, it is not a characteristic of oligopoly.
Which of the following is a unique characteristic of the oligopolistic market structure? barrier to entry.