Oligopoly

oligopoly market. meaning and defenation.

1. BHUSAWAL ARTS, SCI & P.O. NAHATA COMMERCEE COLLEGE BHUSAWAL Presented by : Sanket Bhatia. OLIGOPOLY

2. Introduction The word oligopoly is derived from two Greek words that is “Oligo & Poly.” Oligo means few & Poly means seller it means that there are few sellers in the oligopoly market . Oligopoly market is found in few commodities forexample: steal, car, scooter, television sets, air conditioner etc. A market situation where there are few sellers in the market selling homogeneous or differentiated products.

3. Importance of Study. To study the market and control total supply in the market. To study similar or different product in market. By advertising and selling cost they try to show that their product is superior than other products. To study prof . Sweezy king demand curve for their products.

4. Definition Types of Advantages Disadvantages Price determination factor Conclusion Learning Objectives

5. Research Methodology The data collected is secondary data. Books Notes

6. DEFINITION A situation in which a particular market is controlled by a small group of firms. An oligopoly is much like a monopoly, in which only one company exerts control over most of a market. In an oligopoly, there are at least two firms controlling the market.

7. Pure Oligopoly Imperfect Oligopoly If the firms produce homogeneous products, then it is called pure or perfect oligopoly If the firms produce differentiated products, then it is called differentiated or imperfect oligopoly

8. Cooperative oligopoly Non Cooperative oligopoly If the firms cooperate with each other in determining price or output or both, it is called cooperative oligopoly . If firms in an oligopoly market compete with each other, it is called non-cooperative oligopoly .

9. Advantages Large firms having strong hold over the market are able to make huge profits as there are few players in the market. Easy price comparison forces companies to set their prices competitively which is a positive point for customers. High profits generated by the companies can be used for innovation and development of new products and processes. Oligopoly helps in lowering the average cost of production of goods,

10. Disadvantages With the presence of little competition, dominant companies may not think of improving their products. New firms cannot enter the market easily due to various barriers of entry. High concentration reduces consumer choice. Oligopolists may be allocatively and productively inefficient.

11. Price determination factor C point is BEP No profit No loss

12. Reference General Economics ( ICAI ) Own Notes College Library Introduction to Microeconomics by Ranger Frisch.

13. Conclusion In oligopoly over all marker hold by few firm are able to make huge profits and firm make decision to beat the competition FEW MARKET STRUCTURES OLIGOPOLY

14. Thank You