Discuss? Oligopolists have there own profits in mind in order to corner a market and set a

Discuss?

Transcribed Image Text:

Oligopolists have there own profits in mind in order to corner a market and set a market price. Firm band together and form a cartel and establish there market price called a collusion. The double edge sword in the limit market structure is each companies own success all while keeping the market stable to avoid over production or under production. Much like how big oil and the government regulates oil production. When a high amount of oil hits the market prices tend to drop, and when there is a shortage prices tend to rise. All the big oil producers band together to control production, and keep prices and a profitable level. Oligopoly characteristics include high barriers to new entry, price-setting ability, the interdependence of firms, maximized revenues, product differentiation, and non-price competition. Producers in a monopolistic competitive market are farmers. Farmers produce much of the same goods. Thousands of vegetable growers, cattle producers, and monocropping. All these sellers are in the same market together of producing food. Although there feeding the world their product is not identical. They each find a niche, and separate themselves from the rest to make money. I found the game to be pretty straight forward. the more product the market produced overall the less the oil was worth. The same goes for your firms production. Your firm has to produce an amount that fills the market and maximizes profits, and also falls in line with your competitors. Thanks, Bob Σ > Oligopolists have there own profits in mind in order to corner a market and set a market price. Firm band together and form a cartel and establish there market price called a collusion. The double edge sword in the limit market structure is each companies own success all while keeping the market stable to avoid over production or under production. Much like how big oil and the government regulates oil production. When a high amount of oil hits the market prices tend to drop, and when there is a shortage prices tend to rise. All the big oil producers band together to control production, and keep prices and a profitable level. Oligopoly characteristics include high barriers to new entry, price-setting ability, the interdependence of firms, maximized revenues, product differentiation, and non-price competition. Producers in a monopolistic competitive market are farmers. Farmers produce much of the same goods. Thousands of vegetable growers, cattle producers, and monocropping. All these sellers are in the same market together of producing food. Although there feeding the world their product is not identical. They each find a niche, and separate themselves from the rest to make money. I found the game to be pretty straight forward. the more product the market produced overall the less the oil was worth. The same goes for your firms production. Your firm has to produce an amount that fills the market and maximizes profits, and also falls in line with your competitors. Thanks, Bob Σ >

Answer rating: 100% (QA)

Hi Bob thanks for sharing your insights on oligopolies and monopolistic competition Your understandi... View the full answer