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The Complex Market Structure of Oligopoly Homework Answers Explained!

The Oligopoly Homework Answers are one of the market structures commonly found in various economies. It is a market structure where there are a small number of sellers for a particular product or commodity. It is known for its propensity to influence the market due to the reduced number of sellers. Like the Monopoly market structure, Oligopoly Assignment Answers is known for being a Price Maker. They have an extended control over the customer base and are known to influence the price of the products.

Characteristics of an Oligopoly Homework Answers:

The various characteristics of an Oligopoly Assignment Answers which helps us to identify them are as follows:

  • Profit Maximisation:

An Oligopoly Homework Answers strives to maximise their profits. It is one of their fundamental objectives which helps them to plan and implement their operations. With the help of the Oligopoly market structure and their ability to influence the prices of their products, the process of price maximisation is simplified for them.

  • Price Makers:

Like the Monopoly Market Structure, an Oligopoly Assignment Answers is a Price Maker or a Price Setter. Due to their reduced numbers they exercise reasonable control over their customers. So, they are able to influence the pricing mechanism.

  • High barriers to enter and exit the market structure:

Due to various government regulations, access to research and development, presence of licensing laws and acts, it is difficult to enter or exit an Oligopoly Assignment Answers.

  • Fewer number of sellers:

An Oligopoly Homework Answers is characterised by fewer number of sellers. Examples of such a market structure are the OPEC. OPEC stands for the Organization for Petroleum Exporting Countries. It consists of 14 countries which have at least 77% of the oil reserves of the country.

  • Differentiation of Products:

The products in an Oligopoly market structure can be different from each other i.e. have a heterogeneous composition. Or they can be homogeneous and have little differentiation between them.

  • Interdependence of firms in the market structure:

One of major characteristics of an Oligopoly Assignment Answers is that there are a fewer number of firms in the market. Due to their reduced number all firms are aware of the marketing actions and tactics of the other firms in the market. Thus, they act accordingly. Every firm in the market structure takes an action based on the knowledge that the other firms are aware of their actions.

  • Competition on a different basis:

Unlike most market structures, in an Oligopoly Assignment Answers the competition between the firms is based on subjects other than that of price. The vary from the research and development achievements to customer service.

Real life examples of Oligopoly in the world 

Oligopoly is commonly found in various spheres of life. Some of them have been discussed below:

  • In the world of accountancy, we have the Big Four firms competing against each other. They are KPMG, Deloitte, Ernest & Young and Price Water House Coopers.
  • In the world of aircrafts, Boeing and Airbus enjoy domination over it.
  • Visa and MasterCard are the two famous credit card companies of the world.

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