scroll to top
Stuck on your essay?
Get ideas from this essay and see how your work stacks up
Word Count: 759
At its most simplistic definition it is easy to understand that a monopoly is the name given to a circumstance with one seller and many buyers Then the simple theory of supply and demand is that of a market with many sellers and many buyers An oligopoly on the other hand is more than one seller but less than many sellers It is only logical therefore to ask What is many What for example happens if there are two sellers Though many economists suspect that the results of two sellers are more similar to those of one seller than to those of many sellers Where then does this leave the definition and explanation of oligopoly When the possession of market power is profitable it should attract new entrants into the industry If entry is easy then the existence of very few or even only one firm may not result in economic inefficiency An oligopoly describes a market dominated by a few firms In the world market there are oligopolies in steel production automobiles and semi-conductor manufacturing But oligopoly also describes conditions in smaller markets where a few gas stations grocery stores or alternative burger restaurants dominate in their fields A distinguishing characteristic of oligopoly is the interdependence of firms An oligopoly can occur in different forms such as balanced and unbalanced oligopoly The concentrated market power that may exist in oligopoly markets can be increased through mergers and acquisitions that can be horizontal or vertical Because oligopoly is such a varied market structure it should come as no surprise that several theories exist to explain price output and other factors The motivation of an oligopolist is different than that of a monopolist or a perfect competitor Oligopolies tend to be predatory and may sacrifice profit for a gain of market share The ultimate intention is to force competitors out of business and assume a position of monopoly Bhuyan and Lopez 1055
@Kibin is a lifesaver for my essay right now!!
- Sandra Slivka, student @ UC Berkeley
Wow, this is the best essay help I've ever received!
- Camvu Pham, student @ U of M
If I'd known about @Kibin in college, I would have gotten much more sleep
- Jen Soust, alumni @ UCLA