Oligopoly and Market

Topics: Oligopoly, Competition, Collusion Pages: 3 (999 words) Published: December 4, 2013
Oligopoly
Oligopoly is a market structure in which a small number of sellers are opposed to a lot of buyers, ie the situation when the market several vendors and each may affect the rates. The emergence of new vendors is difficult or even impossible e. If the producers are two, then a duopoly called oligopoly. Goods traded in oligopolistic firms can be differentiated and standardized. Sellers in an oligopolistic market know that when they or their opponents will change the price or sales volume produced, the consequences will affect the profits of all the companies of the market. Oligopolists are acutely aware of their interdependence. Features of oligopoly to oligopolistic market structures include such markets in which the focus from 2 to 24 vendors. On the concentration of sales in the same market oligopolies are divided into “dense” and “discharged” oligopoly. By “dense” oligopolies conditionally include industry structures that are on the market are from 2 to 8 sellers. The structures of the market, which include more than 8 business entities are "discharged" oligopolies. This kind of gradation allows different assessments of the behaviour of enterprises. In the first case, as the number of sellers is limited, there may be all sorts of conspiracies against the behaviour of the market, whereas in the second case, it is almost impossible. Oligopolistic structure can be formed at both the regional and local levels of management. For example, because of the specific features of consumption of ready-mixed concrete in the local markets , also formed oligopolistic structure , as well as at the regional level in the field of supply , such as bricks. All the same no matter what level we have not considered an oligopoly, we should not forget two important points. The first point is inter-industry competition, the second import products. Power oligopoly decreases under the influence of the supply of products by enterprises in other sectors. That may have...
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