Reducing The Power Of An Oligpoly

756 words - 3 pages

At its most simplistic definition, it is easy to understand that a monopoly is the name given to a circumstance with one seller and many buyers. Then the simple theory of supply and demand is that of a market with many sellers and many buyers. An oligopoly, on the other hand, is more than one seller, but less than many sellers. It is only logical, therefore, to ask, "What is many?" What, for example, happens if there are two sellers? Though many economists suspect that the results of two sellers are more similar to those of one seller than to those of many sellers. Where then, does this leave the definition and explanation of oligopoly?When the possession of market power is profitable, it should attract new entrants into the industry. If entry is easy, then the existence of very few or even only one firm may not result in economic inefficiency. An oligopoly describes a market dominated by a few firms. In the world market, there are oligopolies in steel production, automobiles and semi-conductor manufacturing. But, oligopoly also describes conditions in smaller markets where a few gas stations, grocery stores or alternative burger restaurants dominate in their fields. A distinguishing characteristic of oligopoly is the interdependence of firms. An oligopoly can occur in different forms, such as, balanced and unbalanced oligopoly. The concentrated market power that may exist in oligopoly markets can be increased through mergers and acquisitions that can be horizontal or vertical. Because oligopoly is such a varied market structure, it should come as no surprise that several theories exist to explain price, output, and other factors. The motivation of an oligopolist is different than that of a monopolist or a perfect competitor. Oligopolies tend to be predatory and may sacrifice profit for a gain of market share. The ultimate intention is to force competitors out of business and assume a position of monopoly. (Bhuyan and Lopez 1055)In principle, an oligopoly's profits can never be higher than those of a monopoly, since the monopoly chooses the price that maximizes industry profits. The essence of oligopoly is that the firms interact. Thus to gain an understanding of oligopoly we need tools suitable for analyzing situations in which decision makers interact. Commonsense would suggest that the more...

Find Another Essay On Reducing the Power of an Oligpoly

Integration Celebration: Reducing the Harms of Prohibition

513 words - 2 pages them are required to keep their substance use secret. While harm reduction theory may be about moving beyond the criminalisation of drug use, in practise the pathologisation of users can hardly claim to be an improvement in many cases. Slogans such as "drug use is a disease, not a crime" coming from the mouths of drug users is a sure indication for the need for something else.We are not interested in arguing with or apologising to those with an

An Analysis of the Use of Nanotechnology in Electrical Energy Production and Storage and as a Means of Reducing Energy Consumption.

1944 words - 8 pages The energy demand all over the world is expected to be 28 terawatts by 2050, which can lead to increase of energy consumption patterns and greenhouse gas production. (P.Alivisatos et al. 2005) One of the most significant issues the industrialised world is facing today is the energy challenge, issues associated with energy production, storage and reducing consumption of energy use. The use of energy has reason to rise over time due to an increase

The Anxiety- and Pain-Reducing Effects of Music Interventions

1975 words - 8 pages gives people relaxation. It eases stress. For that reason classical music is beneficial for young people to deal with stress. In an experiment mentioned in the article named "Music Listening: Its effects in creating a healing environment" by McCaffrey, it is observed that people’s feeling of anxiety decreases when they are exposed to classical music (40). Listening to classical music helps to get over some situations by reducing anxiety

An Analysis of The Corrupting Nature of Ambition and Power

1835 words - 7 pages one’s actions not only has an effect on the individual, but on others’ views of him as well, represented in the Libyans’ early acceptance of Qaddafi. Therefore, by contrasting Macbeth’s rise to power with that of Qaddafi, it is made evident that dictators can assume leadership regardless of the existence of ambition in their personalities and the nature of their motives. Once in authority, Macbeth and Qaddafi’s lust for holding on to their

The Impossibility of Reducing Global Warming and Environmental Hypocrisy

1280 words - 5 pages carbon (madehow.com). Plastic is an oil product. Of course, Dr. Narain plans on walking to Brussels instead of traveling by some sort of fuel-powered vessel. Jeff Goodell, the author of Big Coal, utters strong words in Heat, “We seem incapable of grasping what's at stake here perhaps because so much is at stake if we don’t do something about reducing CO2 emissions, we're going to cook the planet.…” (Smith). Based solely on the pictures posted on

Reducing the Harm of America?s Drug Problem

2501 words - 10 pages substance abuse facility Berkshire Farm Center, believes that when teenagers are presented with science-based information and choose to remain drug free because of it, they are more likely to remain drug free (Myers). Information on individual drugs is presented in an unbiased manner; both the good effects and bad effects are brought up and discussed. Because no frightening material is presented, no glamour is attached to the drugs, and false

The "Flip-side" of Power An essay on the conflict of power and safety in Macbeth

935 words - 4 pages other, and a similar phenomenon is found in our everyday lives. This relates to William Shakespeare's Macbeth. The protagonist is lured to murder King Duncan by the desire for power, an appetite whetted by the witches' prophecies and his wife's encouragement. But when he obtains the thrown, he finds himself insecure. He attempts to remove threats that decrease his security. In the play Macbeth, despite appearances of paradox, Shakespeare uses the

Wealth and Power of The Upper Class: An Organized Elite

1123 words - 4 pages G. William Domhoff is by trade a psychologist and sociologist and is the author of several books on the theory of power and class structure. In his book, Who rules America Now? Domhoff provides an in depth analysis of the structure of wealth and power in America. He asserts the existence of an institutional upper class in America that is able to dictate/direct the politics, economy and government by virtue of its wealth and power. I contend

The maintenance of power through an undereducated society.

531 words - 2 pages . They would face challenges on an ongoing basis in the sense that the power they hold would always be in a volatile position, repeatedly changing hands over time. Thus a partially undereducated society, along with an uneven distribution in wealth, is necessary in a society in which the affluent and intelligible control the rest.The undereducated may often show a lack of literary interest and skill. The low level of education comes from primarily

The Commerce Clause: An Expansion of Federal Power

1688 words - 7 pages States new charter of government. He argued that to prevent the new government from being struck with something akin to the Tariff Wars, it was essential that there was a centralized control of interstate commerce. “The same want of a general power over Commerce led to an exercise of this power separately, by the States, wch not only proved abortive, but engendered rival, conflicting and angry regulations. Besides the vain attempts to supply

Discuss the Rise of China as an Economic Power

853 words - 3 pages 800 WORD ESSAY: DISCUSS THE RISE OF CHINA AS AN ECONOMIC POWERPowerful because of an inexhaustible labor and more and more trained, with considerable resources, China is becoming the new world superpower. Moreover in the international view, China does not cease being in the center of all the debates. Far from being exhaustive, this study has as an ambition to raise some doubts, interrogations and especially to cause the desire and, curiosity to

Similar Essays

The Benefits Of Reducing Homework Essay

874 words - 4 pages The Benefits of Reducing Homework “My dog ate my homework,” is a famous, desperate excuse theoretically used by students who have failed, out of a lack of self-discipline, to complete homework assignments. Although several people believe that doing homework consistently leads to success in life, it is often placed by high school students in the same category as chores; mundane and difficult. While it is true that completing homework can

The Benefits Of Reducing World Population

1002 words - 4 pages The Benefits of Reducing World Population Scientist Julian Simon asserted in 1992 that population growth, perceived by many to be a growing crisis, was in fact a huge boon to society. Simon countered the common argument that overpopulation would result in miserable, deteriorating living conditions by postulating that "population growth, economic growth, and a resource-rich world coupled with modern technology will produce greater prosperity

Reducing The Time And Expense Of Proposals

1229 words - 5 pages Reducing the Time and Expense of Proposals TABLE OF CONTENTS EXECUTIVE SUMMARY 1 BACK GROUND INFORMATION 2 PROBLEM AND OBJECTIVES 3 RESEARCH METHODOLOGY 4 ESTIMATES OF COST AND SCHEDULE 6 QUALIFICATION OF REASEACHER 8 APPENDIX 9 EXECUTIVE SUMMARY AUTOMATING TO MEET THE NEEDS OF XYZ CONSTRUCTION COMPANY Proposals are extremely important tools in construction, sales and marketing efforts but they also pose some serious

Compliance Systems: Reducing The Risks Of Customers

1606 words - 6 pages for the protection of others. Secondly, compliance systems and policies are designed to reduce the risk of loss of the consumer/customer/client. As the consumer/client/customer is at risk, government regulations are made to protect the consumer and the corporations must follow the guidelines. Most often the laws are not put in place until after an incident has occurred. Finally, becoming compliant is conforming to guidelines and procedures that