Read and analyze the response below. do you agree? why or why not? What do you think? explain. (5 Sentences Minimum)
Oligopoly is a market structure with few firms, none of which can shield the others from having critical impact. There is no exact furthest farthest point to the quantity of firms in an oligopoly, yet the number must be low enough that the activities of one firm fundamentally impact the others. An oligopoly is an industry ruled by a couple of large firms. Oligopolies are pervasive all through the world and seem, by all accounts, to be expanding quickly. Oligopolies are noticeable in a multitude of markets. While these companies are viewed as contenders inside the particular market, they will in general coordinate with one another to profit overall, which can prompt more expensive prices for consumers.
The beer manufacturing industry in the U.S. includes dozens of independent firms. Yet the American beer industry is regarded as one of the most oligopolistic industries in the country. Despite the fact that there are dozens of independent firms, each firm possesses a sizeable bit of US beer market, which means control over the market. The organizations are large in size and they command the market because of their size. Fixed costs are high in terms of large vineyards that are required for beer production. Likewise, obstructions to passage and exit are extremely high because of high fixed costs and supply chain issues. These conditions are satisfied in the beer industry, so it is viewed as an oligopoly.
An oligopoly is where a couple of firms move most or the majority of the products in a market. Oligopolists earn their highest profits if they can band together as a cartel and act like a monopolist by reducing output and raising price. Since every individual from the oligopoly can profit independently from growing yield, such conspiracy frequently separates particularly since express intrigue is unlawful. The prisoner's dilemma would be an example of game theory. It indicates how, in specific circumstances, all sides can profit by agreeable conduct as opposed to self-intrigued conduct.
here in the above expalnation oligopolistic market structure is in focus. as we kknow the characteristics of the oligopoly market, very few firms big in size dominating the market, and has impact on each others price and quantity decissions. here in this example of american beer manufacturing industry though there are not very few firms in the market , but each firm has a considerable amount of market share which makes them have control over the market so they are the big oligopolist firm there. and yes its right that these firms can make a monolpoly by agreeing to the cartel norms. or we can say by getting together and making a cartel will definitly help increase the profit by raising the price and decreasing the output, by which every oligopolist firm which is a member of cartel will win.
Get Answers For Free
Most questions answered within 1 hours.