oligopoly
TRANSCRIPT
BHUSAWAL ARTS, SCI & P.O. NAHATA COMMERCEE COLLEGE BHUSAWAL
Presented by :Sanket Bhatia.
OLIGOPOLY
Introduction •The word oligopoly is derived from two Greek
words that is “Oligo & Poly.” Oligo means few & Poly means seller it means that there are few sellers in the oligopoly market .
•Oligopoly market is found in few commodities forexample: steal, car, scooter, television sets, air conditioner etc.
•A market situation where there are few sellers in the market selling homogeneous or differentiated products.
Importance of Study.• To study the market and control total
supply in the market. •To study similar or different product in
market.•By advertising and selling cost they try to
show that their product is superior than other products.
•To study prof. Sweezy king demand curve for their products.
DefinitionTypes ofAdvantagesDisadvantagesPrice determination factorConclusion
Learning Objectives
Research Methodology•The data collected is secondary data.•Books •Notes
DEFINITION
A situation in which a particular market is controlled by a small group of firms.
An oligopoly is much like a monopoly, in which only one company exerts control over most of a market. In an oligopoly, there are at least two firms controlling the market.
Oligopoly
Pure Oligopoly
Imperfect Oligopoly
Cooperative Oligopoly
Non- Cooperative Oligopoly
Pure Oligopoly
Imperfect Oligopoly
If the firms produce homogeneous products, then it is called pure or perfect oligopoly
If the firms produce differentiated products, then it is called differentiated or imperfect oligopoly
Cooperative oligopoly
Non Cooperative oligopoly
If the firms cooperate with each other in determining price or output or both, it is called cooperative oligopoly.
If firms in an oligopoly market compete with each other, it is called non-cooperative oligopoly.
Advantages Large firms having strong hold over the market are
able to make huge profits as there are few players in the market.
Easy price comparison forces companies to set their prices competitively which is a positive point for customers.
High profits generated by the companies can be used for innovation and development of new products and processes.
Oligopoly helps in lowering the average cost of production of goods,
Disadvantages
With the presence of little competition, dominant companies may not think of improving their products.
New firms cannot enter the market easily due to various barriers of entry.
High concentration reduces consumer choice.
Oligopolists may be allocatively and productively inefficient.
Price determination factor
C point is BEPNo profit No loss
Reference•General Economics ( ICAI )•Own Notes•College Library •Introduction to Microeconomics by
Ranger Frisch.
Conclusion
In oligopoly over all marker hold by few firm are able to make huge profits and firm make decision to beat the competition
FEW MARKET STRUCTURES
OLIGOPOLY
Thank You