This document discusses the concept of oligopoly and provides examples. It defines oligopoly as a market structure with a few firms and many buyers. It notes that firms in an oligopoly are mutually interdependent and considers factors like price, competition, relationships between firms, and economic scale. It provides graphs to illustrate concepts like kinked demand curves and marginal revenue curves. It gives common examples of oligopolistic industries and compares oligopoly to monopoly, perfect competition, and monopolistic competition.

1. Harmeet Anand, Hiroki Osame, Hiroko Taniguchi, and Keita Kim The Concept of an Oligopoly

2. THE NATURE OF OLIGOPOLY " 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

3. GRAPHS

4. KINKED DEMAND CURVE Increase price = elastic Decrease price = inelastic

5. MARGINAL REVENUE CURVE Two different elasticities Disappears

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

7. NORMAL PROFIT

8. ABNORMAL PROFIT

9. LOSS

10. COMMON EXAMPLES - 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. COMPARISON 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

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13. OLIGOPOLY 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