General
What is an Oligopoly?
Oligopoly is a market where the supply is controlled by a small group of companies. In this condition, the actions of one company will have a material effect on the entire market for a product.
Several characteristics of an Oligopoly:
1) Substantial barriers to entry
2) Market dominated by a few large firms
3) Differentiated products
4) Price rigidity
An example of this type of monopoly would be the corporations Visa and MasterCard. They are in the business of card securities and hold major market share. However, it could be noted that Visa holds more of a pure monopoly status; MasterCard does have a high level of control to create a competitive market situation.
Several characteristics of an Oligopoly:
1) Substantial barriers to entry
2) Market dominated by a few large firms
3) Differentiated products
4) Price rigidity
An example of this type of monopoly would be the corporations Visa and MasterCard. They are in the business of card securities and hold major market share. However, it could be noted that Visa holds more of a pure monopoly status; MasterCard does have a high level of control to create a competitive market situation.
Advertisement
More from this specialization
- What is the Gross Domestic Product of Norway?
- What are the effects of globalization on Indian industry?
- You have a five-gallon jug and a three-gallon jug. You must obtain exactly four gallons of water. How will you do it?
- Why do some people believe that a mixed economic system solves basic economic problems?
- What all are your future goals ?
- What is the incidence of tax?