This document defines and provides examples of an oligopoly market structure. An oligopoly exists when there are a few dominant firms in an industry serving many buyers. Key aspects of oligopolies include mutual interdependence between firms, inelastic demand curves, and examples like wireless carriers, supermarkets, and electronics manufacturers. The document also contrasts oligopolies with other market structures and discusses pricing strategies in an oligopolistic market.

1. The Concept of an
Oligopoly

2. "A market form where there are only a few firms in the industry
but there are many buyers."
- Producers
- Buyers
- Products
- Mutual Interdependence
- Price
- Competition
- Relationship between firms
- Economic Scale

4. • Increase price = elastic
• Decrease price = inelastic

5. • Two different elasticities
• Disappears

6. • When vertical, change in marginal costs will not affect the
price and quantity

10. -Operating Systems : Apple, Microsoft
-Gaming Consoles : Nintendo, Sony, Microsoft
-Canada's wireless service : Rogers Wireless, Bell Mobility, Telus
-UK's supermarkets : Tesco, Sainsbury's, Asda and Morrisons
-World wide food processing : Kraft Foods, PepsiCo and Nestle
-Airliners : Boeing and Airbus
-American TV : Disney/ABC, CBS Corporation, NBC Universal, Time Warner,
and News Corporation
-UK's detergent market : Unilever and Procter & Gamble

11. Oligopoly Monopoly Perfect Competition Monopolistic Competition
-
Innovative/ creative
- Few firms =
greater efficiency
- Expand too much
- Experience
diseconomy of scale
- Increase in AC
- No competition, no
innovation
- Undifferentiated
products
- Consumers have
limited choice
- BORING
- Advertise and induce
consumers to spend more
-No control in price
- Consumers suffer more

12. Pricing:
16GB model: ¥50,000
32GB Model: 65,000
64GB Model: ¥80,000
Say hello to the new "laptop," iHarpod

13. A market form where there are only a few firms in the industry
but there are many buyers.
The kinked demand curve very clearly depicts the nature of an
oligopolistic market structure