Question

WE are to chose a topic, and I chose Oligopoly and we are to Illustrate (in words) the concept by using it in an analogy or a metaphor. Your response must contain at least 2 elements;

Answer 1

An oligopoly market is such a market where we get few sellers and large number of buyers. Here few means 2 or more sellers in the market who controls the market. On the other hand in monopoly we get single seller and in perfect competition there is large number of sellers. This market has neither single seller nor many sellers. Here we get few sellers. Another point is here we get large number of buyers and this is similar to monopoly and perfect competition. But this oligopoly market could be pure oligopoly and differentiated oligopoly. When all the producer sell same and homogeneous product then it is called pure oligopoly and when they sell differentiated product then it is called differentiated oligopoly. This thing we do not get in monopoly and perfect competition. Here the oligopoly market is different from other two.