Oligopoly

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Oligopoly is the middle ground between monopoly and capitalism. An oligopoly is a small group of businesses, two or more, that control the market for a certain product or service. This gives these businesses huge influence over price and other aspects of the market. Since it is the middle ground, oligopoly examples are abundant in our economic system today.

Businesses that are part of an oligopoly share some common characteristics, they are less concentrated than in a monopoly, but more concentrated than in a competitive system. There is still competition within an oligopoly, as in the case of airlines. Airlines match competitor’s air fares when sharing the same routes. Also, automobile companies compete in the fall as the new models come out. One will reduce financing rates and the others will follow suit. The businesses offer an identical product or services. This creates a high amount of interdependence which encourages competition in non price-related areas, like advertising and packaging. The tobacco companies, soft drink companies, and airlines are examples of an imperfect oligopoly.

The music industry or music business consists of the companies and individuals that make money by creating and selling music. Among the many individuals and organizations that operate within the industry are: the musicians who compose and perform the music; the companies and professionals who create and sell recorded music, those that present live music performances, professionals who assist musicians with their music careers, those who broadcast music, journalists, educators, musical instrument manufacturers, as well as many others. The current music industry emerged around the middle of the 20th century, when records had supplanted sheet music as the largest player in the music business: in the commercial world, people began speaking of "the recording industry" as a loose synonym of "the music industry". Along with their numerous subsidiaries, a large majority of this...
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