What main features are found in oligopolies, Microeconomics

Assignment Help:

What main features are found in oligopolies?

Assumptions of oligopoly

  • Four or five firm concentration ratio
  • Frequently there are benefits of scale to be had
  • Mergers, take-overs and buy-outs are common
  • Incentive to collude, i.e. build cartels

a)  collusion not limited to price or output - possible to divide markets or limit entrants

b)  collusion is most often illegal

 c) Collusion often short-lived, as cheating is a strong incentive

d)  Overt and tacit collusion

e)  Price leader

  • Non-collusive oligopolies

a) Non-collusive outcome results often in price rigidity

b) Firms are heavily interdependent and reluctant to engage in head-on competition

c) Non-price competition may result in both new and better goods - or at least the marketing effort will increase perceived quality

 


Related Discussions:- What main features are found in oligopolies

Conservaton of mass, IN THE LABORATORY OXYGEN IS PRODUCED BY HEATING POTASS...

IN THE LABORATORY OXYGEN IS PRODUCED BY HEATING POTASSIUM CHLORATE ACCORDING TO THE EQUATION 2KCLO3-2KCL+3O2. WHEN 298g OF KCLO3 IS HEATED IT GAVE 181.2g OF OXYGEN. GIVEN THAT 32g

Economics for money, 1. Discuss how banks make money, and are structured in...

1. Discuss how banks make money, and are structured in respect to Asset, Liability and Capital Management – give examples.

Microeconomics, compare the concept of MRTS with the MRS and discuss the si...

compare the concept of MRTS with the MRS and discuss the similarities and difference between them?

What is the concept of the development, What is the concept of the developm...

What is the concept of the development? The concept of the development: Development is a complicated multi-dimensional concept to do along with enhancements in the human

Consumer behaviour, Maurice has the following utility function: U (X; Y ) =...

Maurice has the following utility function: U (X; Y ) = 20X + 80Y ?? X2 ?? 2Y 2 where X is his consumption of CDs, with a price of $1, and Y is his consumption of movie videos, wit

Molarity and normality, What is the Molarity and Normality of the ferrous a...

What is the Molarity and Normality of the ferrous ammonium salt ? For exam....196 gm (initial)

What is the macroeconomics, What is the Macroeconomics? Macroeconomics...

What is the Macroeconomics? Macroeconomics is study about the aggregate behavior of the economy like how the actions of all the individuals and firms within the economy intera

Help, Calculate the number of moles in 15.8 grams of aluminum hydroxide

Calculate the number of moles in 15.8 grams of aluminum hydroxide

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd