Question

1. What are some real-world examples of markets that could be characterized as oligopolies
2. Describe how investment in human capital could help solve the poverty problem?

Answer 1

Oligopoly is the market structure with few large firms capturing a large market share. Real world example of auto industry with few large manufacturers including ford, GMC, etc.

Another example is telecom industry with few dominating firms such as AT&T, Verizon, T-Mobile, etc.

-- investment in human capital increases labor productivity which leads to increase in demand for labor that results in increase in wage rate and thus income. Productive workers produce higher level of output increasing GDP as a whole. This helps in solving poverty problem.