Essays on Oligopoly

Introduction What is meant by a market structure? It is the environment in which firms produce and sell their products. A market structure has three key characteristics. The first characteristic is the number of firms in the market. Some markets have many firms competing against…

Industry: Telecommunications Industry, Internet Service Providers Note: Since the telecommunications industry includes telephone companies, internet service providers (ISP) and mobile communications, I narrowed it to only ISP for better explanation and classification. Before start to analyze telecommunications industry under 7 assumption, I want to explain…

There is always a brand or two that takes the front line when it comes to producing and marketing particular products/services. Such companies are usually as professional as possible. They have a huge deposit of capital for their business, they understand the best strategies and…

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….

Price-output behavior in Oligopoly The kinked demand curve: This model was developed in 1939 by the economist Sweezy. It assumes that an oligopolist will expect rival firms to follow any price decrease it makes but not follow any increase. Thus the elasticity of demand for…