On the next few slides be sure to answer the following questions. What is an oligopoly? Give an example of an oligopoly. How many sellers are competing?
Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question and specify the other subparts (up to 3) you’d like answered
Answer:
(1).
Oligopoly: An oligopoly refers to the market structure where there are few large firms dominate the market. There may be two or more than two firms. There are many buyers in this market. Firms can either produce homogeneous products like cement and aluminum etc or differentiated products like automobiles and soft drinks.
(2).
Example of an oligopoly market:
The market of soft drinks is an example of an oligopoly market in India. It is because almost all the market share is captured by these two large firms i.e. coca-cola, Pepsi. There are some small firms as well but their market share is very low. So there are only two large firms that control the market for soft drinks and form oligopoly.
One more example of oligopoly is the market for Commercial Aircraft. There are only two big firms i.e. Boeing and Airbus that control almost 99% of the market and the remaining 1% is controlled by some small firms.
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