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Oligopoly, monopoly
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<!DOCTYPE html PUBLIC "-//ABISOURCE//DTD XHTML plus AWML 2.2//EN" "http://www.abisource.com/2004/xhtml-awml/xhtml-awml.mod"><html xmlns="http://www.w3.org/1999/xhtml" xmlns:awml="http://www.abisource.com/2004/xhtml-awml/"> <head> </head> <body> <div> <p class="normal_(web)" style="text-align:justify;margin-bottom:0.000000pt;margin-top:0.000000pt" awml:style="Normal (Web)"> <span style="color:#333333">Oligopoly Market:</span> </p> <p class="normal_(web)" style="text-align:justify;margin-bottom:12.000000pt;margin-top:0.000000pt" awml:style="Normal (Web)"> <span style="color:#333333">An Oligopoly market structure is where there are few players in the market. There will be tight and stiff competition as there will be direct competition. The number of competitors will be limited and a few firms will dominate the entire market.</span> </p> <p class="normal_(web)" style="text-align:justify;margin-bottom:0.000000pt;margin-top:0.000000pt" awml:style="Normal (Web)"> <span style="color:#333333">Influence on Decision Making: In an oligopolistic market structure the decision has to be taken more strategically as even one wrong move can prove advatageous to the competitor. Take for example Pepsi and Coca Cola, they are typically oligopolistic in market. One wrong strategy by Pepsi will increase the profit margin of Coke drastically. Hence while taking decisions it is important to think about the counter effects of the outcome.</span> </p> <p class="normal_(web)" style="text-align:justify;margin-bottom:0.000000pt;margin-top:0.000000pt" awml:style="Normal (Web)"> </p> <p class="normal_(web)" style="text-align:justify;margin-bottom:0.000000pt;margin-top:0.000000pt" awml:style="Normal (Web)"> <span style="color:#333333">Influence in Pricing: Pricing will be very competitive in an oligopolistic market stucture. As the number of players are limited, the price cannot vary too much from that of a competitor. The price should either be marginally different or the same as that of the competitor. The difference has to be in the quality of the product. But even a marginal decrease in the price can result in good profits for XXX company. The XXXXXXXXX will XXX XXXX the XXXXXXX to set XXXXXX XX XXX XXXXXX will influence XXX competitor XXX XXXX XXXX an edge over competition.</span> </p> <p class="normal_(web)" style="text-align:justify;XXXXXX-bottom:X.XXXXXXXX;XXXXXX-XXX:0.XXXXXXXX" awml:style="Normal (XXX)"> </p> <p XXXXX="normal_(XXX)" style="XXXX-XXXXX:justify;margin-bottom:X.000000pt;margin-XXX:X.000000pt" awml:style="XXXXXX (XXX)"> <span style="color:#XXXXXX">XXXXXXXXX XX Output: In an oligopolistic market XXXXXXXXX XXX XXXXXXX XX the product XX XXXX XXXXXXXXX. The products taste XXX colour in case of food and XXXXXXXX or XXX XXXX and XXXX of the XXXXXXX in case XX durables are XXXX important. XXX XXXXXX will be XXXXXXXX visible to XXX consumers making them XXXX to XXXXXXX XXXX XXXX XX the competitor. So XXXXXXX should XX perfect.</span> </p> <p class="XXXXXXX(XXX)" style="XXXX-XXXXX:justify;margin-bottom:0.000000pt;XXXXXX-top:X.XXXXXXXX" awml:style="Normal (Web)"> </p> <p XXXXX="normal_(web)" style="text-align:justify;margin-XXXXXX:X.000000pt;XXXXXX-XXX:0.000000pt" awml:style="XXXXXX (XXX)"> <span style="color:#333333">Influence XX XXXXXXXXXXX: Marketing XXX Advertising are XXX aspects in XXXXXXXXX. XXXXX the number XX competitors are less, consumers XXXX XXXXXX remember XXX substitutes. If A is not XXXXXXXXX XXXX will XXXXXXXXXX XXX XX to X. XX XXXXXXXXXX marketing XXX innovative advertising campaigns should be XXXXXXXX by XXX XXXXXXXXX.</span> </p> <p class="normal_(XXX)" style="XXXX-align:justify;XXXXXX-bottom:X.000000pt;XXXXXX-XXX:0.XXXXXXXX" awml:style="Normal (Web)"> </p> <p class="normal_(XXX)" style="text-align:XXXXXXX;margin-XXXXXX:0.000000pt;margin-XXX:X.000000pt" awml:style="Normal (Web)"> <span style="XXXXX:#333333">Use of XXXXXXXXX: XXXXXXX resources XXXX XX in XXXXX XXXXXX by XXXX XXX employers. Hence XXXXXXXX XXXXXXXXX is very XXXXXXXXX. Employee turnover should be very XXXX. The XXXXX XXXXXXXXX should be identified and XXXXXXXXX for the XXXXXXX XX perform XXXXXX. The XXXXXXXXX XXXXXX XX XXXXXXXXXX, appraised XXX retained XXX the company to earn profits.</span> </p> <p> </p> <p> </p> <p class="XXXXXXX(XXX)" style="margin-bottom:12.000000pt;XXXXXX-top:0.000000pt" awml:style="Normal (XXX)"> <span style="color:#XXXXXX">XXXXXXXXXXXX of the XXXXXX structure</span> </p> <p class="XXXXXXX(web)" style="margin-XXXXXX:XX.XXXXXXXX;margin-XXX:0.XXXXXXXX" awml:style="XXXXXX (XXX)"> <span style="color:#XXXXXX">XXXXXXXXX XX the market where few markets dominate. X.g. Airline Industries have XXXX few XXXXX competitors. XX is the portion of XXXXXX ration controlled XX XXX competitors. The firm has a rival XXXX the close competitions. Strategy XX XXXXXXXXX XXXXXXXXX to alive in XXXXXXXXX market. price XXXXXXXXXXXXXX occurs when the firm changes XXX price XXX each XXX every unit of consumption. XX occurs XX XXXXXXXX XXX XXXX XXXXX in XXX markets. It involves XXXXXXXX XXXXXXXXX the maximum XXXXX XXXXX XX pay.</span> </p> <p class="normal_(web)" style="XXXXXX-bottom:XX.000000pt;XXXXXX-XXX:X.000000pt" awml:style="XXXXXX (Web)"> <span style="color:#333333">kinked demand Theory is a XXXXXX on demand XXX monopolist market conditions.</span> </p> <p> </p> <p> </p> <p> </p> <p class="XXXXXXX(XXX)" style="XXXXXX-bottom:X.XXXXXXXX;XXXXXX-XXX:X.XXXXXXXX" awml:style="XXXXXX (Web)"> <span style="text-decoration:underline;color:#XXXXXX">Airline XXXXXXXXX</span> </p> <p XXXXX="normal_(web)" style="margin-bottom:12.XXXXXXXX;margin-top:X.000000pt" awml:style="XXXXXX (Web)"> <span style="XXXXX:#333333">In XXXXXXX, XXXXXXX XXXXXXX XXXXXX in few XXXX advance is cheaper XXXX XXXXXX XX the XXXX day. XXXX XXXXX flight charges a different XXXXX. Price XX XXXX charged XXXXX XX XXX XXXXX travelled.</span> </p> <p class="normal_(web)" style="XXXXXX-bottom:X.000000pt;margin-top:X.000000pt" awml:style="Normal (XXX)"> <span style="text-XXXXXXXXXX:XXXXXXXXX;color:#333333">XXXXXXXXX XX. retail markets</span> </p> <p class="XXXXXXX(web)" style="margin-bottom:XX.XXXXXXXX;margin-XXX:0.XXXXXXXX" awml:style="XXXXXX (XXX)"> <span style="XXXXX:#333333">In XXXXXXXXX XXXXXX, the products XXX sold in XXXXX quantities XXX they are sold cheaper. The manufacturer charges a cheaper price XXXX a wholesaler XXX a XXXXXX XXXXX XXX the same product from XXXXXXXXX.</span> </p> <p XXXXX="normal_(web)" style="XXXXXX-XXXXXX:0.XXXXXXXX;margin-top:0.000000pt" awml:style="Normal (XXX)"> <span style="XXXX-XXXXXXXXXX:XXXXXXXXX;XXXXX:#XXXXXX">Movie XXXXXXX tickets</span> </p> <p XXXXX="XXXXXXX(XXX)" style="XXXXXX-bottom:XX.XXXXXXXX;margin-top:X.XXXXXXXX" awml:style="Normal (XXX)"> <span style="XXXXX:#XXXXXX">XXX a XXXXX XXXXXX, XXXXXXXXX prices XXX XXXXXXX based XX the age XX XXX viewer. For an XXXXX, ticket XXXX XX XXXXXX whereas XXX a XXXXX XXXX is normally XXXXX.</span> </p> <p class="XXXXXXX(web)" style="margin-bottom:0.XXXXXXXX;XXXXXX-top:0.000000pt" awml:style="XXXXXX (Web)"> <span style="XXXX-XXXXXXXXXX:underline;color:#333333">Discount XXXXXXX</span> </p> <p XXXXX="XXXXXXX(web)" style="margin-bottom:XX.XXXXXXXX;margin-top:0.000000pt" awml:style="Normal (XXX)"> <span style="XXXXX:#333333">XXXXXXXXX, XXXXXXXX XXXXXXX are issued to only those XXXXXXXXX XXX make excessive XXXXXXXXX. XX XXXX XXX, XXX different XXXXXXXXX XXX up XXXXXX a XXXXXXXXX price for XXX XXXX product.</span> </p> <p class="normal_(web)" style="margin-XXXXXX:XX.000000pt;margin-XXX:0.XXXXXXXX" awml:style="Normal (XXX)"> </p> <p XXXXX="XXXXXXX(web)" style="margin-XXXXXX:12.XXXXXXXX;XXXXXX-XXX:X.XXXXXXXX" awml:style="Normal (XXX)"> </p> <p class="normal_(XXX)" style="margin-XXXXXX:XX.XXXXXXXX;XXXXXX-XXX:X.XXXXXXXX" awml:style="Normal (XXX)"> </p> <p class="normal_(web)" style="margin-XXXXXX:XX.000000pt;XXXXXX-top:0.000000pt" awml:style="XXXXXX (Web)"> </p> <p class="normal_(XXX)" style="XXXXXX-bottom:XX.000000pt;margin-top:0.XXXXXXXX" awml:style="XXXXXX (XXX)"> </p> <p class="XXXXXXX(XXX)" style="XXXXXX-XXXXXX:12.000000pt;margin-XXX:X.XXXXXXXX" awml:style="Normal (XXX)"> </p> <p XXXXX="normal_(web)" style="XXXXXX-XXXXXX:12.000000pt;XXXXXX-top:0.XXXXXXXX" awml:style="XXXXXX (XXX)"> </p> <p class="normal_(web)" style="margin-bottom:XX.000000pt;XXXXXX-top:0.000000pt" awml:style="XXXXXX (XXX)"> </p> <p class="normal_(web)" style="margin-bottom:12.000000pt;XXXXXX-top:0.XXXXXXXX" awml:style="XXXXXX (Web)"> </p> <p XXXXX="normal_(XXX)" style="margin-XXXXXX:XX.XXXXXXXX;XXXXXX-XXX:X.XXXXXXXX" awml:style="Normal (XXX)"> </p> <p XXXXX="XXXXXXX(XXX)" style="margin-XXXXXX:XX.XXXXXXXX;margin-top:X.000000pt" awml:style="XXXXXX (XXX)"> </p> <p XXXXX="XXXXXXX(XXX)" style="XXXXXX-XXXXXX:XX.000000pt;XXXXXX-top:0.000000pt" awml:style="Normal (Web)"> </p> <p XXXXX="XXXXXXX(web)" style="XXXXXX-XXXXXX:XX.000000pt;margin-top:X.XXXXXXXX" awml:style="XXXXXX (XXX)"> </p> <p class="normal_(web)" style="margin-XXXXXX:XX.000000pt;XXXXXX-top:0.XXXXXXXX" awml:style="Normal (XXX)"> <span style="font-XXXXXX:XXXX;font-XXXX:XXXX;XXXX-XXXXXXXXXX:underline;XXXXX:#XXXXXX">XXXXX XXXXXXXXX answer:</span> </p> <p XXXXX="normal_(web)" style="margin-XXXXXX:12.000000pt;margin-XXX:0.XXXXXXXX" awml:style="XXXXXX (XXX)"> <span style="color:#XXXXXX">XX an oligopoly market structure a few XXXXX XXXXXXXX.The XXXXXX XX XXXXXX XXXXXXXXXXXX. XXXXXX XXXX a XXX firms XXXXXXXX, it XX possible that XXXX XXXXX firms XXX XXXX operate in the XXXXXX. For example, major airlines like XXXXXXX Airways (BA) and XXX XXXXXX XXXXXXX XXXXX XXXXXX XXXX only a XXX close XXXXXXXXXXX, XXX XXXXX are also XXXX XXXXX XXXXXXXX XXXXXXXX XXX the holidaymaker or XXXXXXXX XXXXXXXXXX services</span> </p> <p XXXXX="XXXXXXX(XXX)" style="margin-bottom:12.XXXXXXXX;XXXXXX-top:0.XXXXXXXX" awml:style="XXXXXX (XXX)"> <span style="XXXXX:#333333">The XXXX XXXXXXXX of XXXXX operating in a market with few XXXXX XXXXXX include:</span> </p> <p XXXXX="XXXXXXX(web)" style="XXXXXX-XXXXXX:12.000000pt;margin-XXX:0.XXXXXXXX" awml:style="Normal (Web)"> <span style="color:#333333">Interdependence</span> </p> <p class="normal_(web)" style="margin-bottom:12.XXXXXXXX;margin-top:X.XXXXXXXX" awml:style="Normal (XXX)"> <span style="XXXXX:#XXXXXX">A XXXXXXX operating in a market XXXX XXXX a few competitors must take the XXXXXXXXX reaction of XXX closest XXXXXX into XXXXXXX when making XXX own XXXXXXXXX. XXX example, XX a XXXXXX XXXXXXXX XXXX XXXXXX wants XX XXXXXXXX its market share by XXXXXXXX XXXXX, it must take into account the possibility that XXXXX rivals, such as BP, XXX reduce XXXXX XXXXX in retaliation.</span> </p> <p XXXXX="XXXXXXX(XXX)" style="XXXXXX-XXXXXX:12.XXXXXXXX;XXXXXX-XXX:X.XXXXXXXX" awml:style="XXXXXX (Web)"> <span style="color:#333333">Strategy</span> </p> <p XXXXX="XXXXXXX(XXX)" style="XXXXXX-XXXXXX:XX.000000pt;XXXXXX-XXX:X.XXXXXXXX" awml:style="Normal (XXX)"> <span style="XXXXX:#333333">XXXXXXXX XX important to XXXXX XXXX XXX interdependent. As firms XXXXXX act independently, they must XXXXXXXXXX XXX likely XXXXXXXX XX a XXXXX to XXX XXXXX change in XXXXX XXXXX, or XXXXX XXX-price XXXXXXXX.</span> </p> <p XXXXX="XXXXXXX(web)" style="XXXXXX-XXXXXX:XX.XXXXXXXX;margin-XXX:X.XXXXXXXX" awml:style="XXXXXX (XXX)"> <span style="XXXXX:#XXXXXX">Oligopolists have to XXXX XXXXXXXX XXXXXXXXX decisions, like:</span> </p> <span XXXXX="normal_(web)" style="background:#ffffff"></span><span style="XXXXX:#XXXXXX">XXXXXXX to XXXXXXX XXXX XXXXXX, or collude with XXXX.</span><span XXXXX="normal_(web)" style="XXXXXXXXXX:#XXXXXX"></span><span style="XXXXX:#XXXXXX">Whether XX increase or lower price, or keep XXXXX constant.</span><span class="XXXXXXX(XXX)" style="XXXXXXXXXX:#XXXXXX"></span><span style="color:#XXXXXX">Whether XX be the first firm XX XXXXXXXXX a XXX XXXXXXXX, or whether XX XXXX and see XXXX XXXXXX do. .</span> <p XXXXX="normal_(web)" style="margin-bottom:XX.XXXXXXXX;XXXXXX-XXX:X.000000pt" awml:style="XXXXXX (Web)"> <span style="color:#XXXXXX">Barriers to entry</span> </p> <p class="XXXXXXX(XXX)" style="margin-bottom:0.000000pt;XXXXXX-top:X.000000pt" awml:style="XXXXXX (XXX)"> <span style="color:#XXXXXX">Oligopolies XXXXXXXX XXXXX position XX dominance in a XXXXXX XXXXX because it XX too XXXXXX or XXXXX XXX potential XXXXXX XX enter the XXXXXX. XXXXX hurdles are XXXXX as barriers to XXXXX XXX XXX incumbent XXX XXXXX XXXX XXXXXXXXXXXX, or XXXX XXX exploit XXXXXXX barriers XXXX XXXXX</span> </p> <p XXXXX="normal_(XXX)" style="margin-XXXXXX:XX.000000pt;margin-top:X.XXXXXXXX" awml:style="XXXXXX (XXX)"> <span style="XXXXX:#333333">XXXXXXX strategies in XXXXXXXXXXX</span> </p> <span XXXXX="XXXXXXX(XXX)" style="XXXXXXXXXX:#ffffff"></span><span style="XXXXX:#333333">XXXXXXXXX pricing -. This XXXXX XXXXXXX price artificially XXX,usually XXXXX XXX full XXXX XX XXXXXXXXXX.</span><span XXXXX="XXXXXXX(web)" style="background:#XXXXXX"></span><span style="XXXXX:#333333">XXXXX-pricing strategy may be used XX deter entrants,</span><span XXXXX="XXXXXXX(XXX)" style="XXXXXXXXXX:#ffffff"></span><span style="color:#XXXXXX">XXXXXXXXXXXX XXX XXXXXXX XXXX rivals XXX XXXXX price together, XXXXXXX this XXX XXXXXXX XXX entrants.</span><span XXXXX="normal_(XXX)" style="background:#XXXXXX"></span><span style="color:#333333">Cost-XXXX pricing XX a XXXXXXXXXXXXXXX pricing XXXXXX, where a XXXXXXX XXXX a price by XXXXXXXXXX average production XXXXX and then adding a fixed mark-XX XX achieve a XXXXXXX profit level.</span> <p XXXXX="normal_(XXX)" style="XXXXXX-bottom:XX.000000pt;margin-top:0.000000pt" awml:style="XXXXXX (Web)"> <span style="XXXXX:#XXXXXX">XXXXXX demand XXXXX</span> </p> <p class="normal_(web)" style="margin-bottom:X.XXXXXXXX;XXXXXX-top:0.000000pt" awml:style="Normal (Web)"> <span style="color:#333333">XXX reaction XX XXXXXX XX a price XXXXXXXXXXX XXXXXXX XX whether XXXXX is XXXXXX or XXXXXXX. The XXXXXXXXXX XX demand, and XXXX the XXXXXXXX XX XXX demand curve, XXXX be XXXX XX XXXXXX. The XXXXXX XXXXX will XX kinked, XX the current XXXXX.</span> </p> <p class="XXXXXXX(web)" style="margin-XXXXXX:XX.XXXXXXXX;XXXXXX-top:X.XXXXXXXX" awml:style="Normal (Web)"> Images Not Shown</p> <p> </p> </div> </body></html>">
