What is Oligopoly and why does it occur. Concept Introduction: An industry with only few sellers is known as an oligopoly.

Question

Want to see more full solutions like this?

Answer 1

Question

Chapter 14, Problem aWYWL

To determine

What is Oligopoly and why does it occur.

Concept Introduction:

An industry with only few sellers is known as an oligopoly.

Expert Solution & Answer

Explanation of Solution

A monopoly is one firm, duopoly is two firms and oligopoly is two or more firms. Oligopoly is that kind of market structure in which the decisions of one firm are influenced by the decisions of other firms. An oligopoly isn’t necessarily made up of large firms. It includes a number of small firms, with few sellers, each seller is likely to be aware of the actions of others. Oligopolies are the price makers rather than price takers. Due to high barriers to entry, it becomes difficult for new firms to enter the market. The primary reason because of which oligopolies came into existence was because of large investment of capital. Since the market was dominated by existing sellers who were price makers, it was difficult for new firms to enter the market and invest huge sums of capital to and distinguish its product from the prevailing ones. Many oligopolies have occurred by the combination or merger of two or more independent firms. Mergers resulted in higher market share. Also, as there is high entry barrier, firms may not choose to enter into the market and make losses. To distinguish its product from the existing product, the firm will have to bear huge expenses and may not be able to make profits in the short run. Owing to all these reasons, oligopolies came into existence.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Students have asked these similar questions

The figure below shows the hypothetical domestic supply and demand for baseball caps in the country of Spain. Domestic Supply and Demand for Baseball Caps Price (€ per cap) 10 9 8 7 6 5 4 3 2 1 0 Spain Dd 10 20 30 40 50 60 70 80 90 100 Baseball caps (thousands per month) Suppose that the world price of baseball caps is €2 and there are no import restrictions on this product. Assume that Spanish consumers are indifferent between domestic and imported baseball caps. Instructions: Enter your answers as whole numbers. a. What quantity of baseball caps will domestic suppliers supply to domestic consumers? thousand b. What quantity of baseball caps will be imported? thousand Now suppose a tariff of €1 is levied against each imported baseball cap. c. After the tariff is implemented, what quantity of baseball caps will domestic suppliers supply to domestic consumers? thousand d. After the tariff is implemented, what quantity of baseball caps will be imported? thousand

May I please have the solutions for the following assignment? as 2025

Response to J.C. Ethics Statement Raising our products' global profile requires a firm commitment to doing the right thing by society and the environment. By switching to a more energy-efficient cloud architecture, BillRight Software, Inc. will reduce its carbon footprint while also ensuring the absolute security of all customer data. Fair labor standards, a diverse and inclusive workforce, and giving back to the communities where our employees live and work are some of our core values. Following local regulations, accepting cultural variances, and actively participating in community development projects are all ways our brand and product will uphold our ethical values globally (Corcoran, 2024; Kotler et al., 2023; Kotler & Keller, 2024; Solomon & Russell, 2024). How MKTG 525 Gets You Together with Classmates? Different points of view in dealing with classmates from many backgrounds exposes you to many points of view, ideas, and techniques. This variety enriches the learning…

Answer 2

Question

Chapter 14, Problem aWYWL

To determine

What is Oligopoly and why does it occur.

Concept Introduction:

An industry with only few sellers is known as an oligopoly.

Expert Solution & Answer

Explanation of Solution

A monopoly is one firm, duopoly is two firms and oligopoly is two or more firms. Oligopoly is that kind of market structure in which the decisions of one firm are influenced by the decisions of other firms. An oligopoly isn’t necessarily made up of large firms. It includes a number of small firms, with few sellers, each seller is likely to be aware of the actions of others. Oligopolies are the price makers rather than price takers. Due to high barriers to entry, it becomes difficult for new firms to enter the market. The primary reason because of which oligopolies came into existence was because of large investment of capital. Since the market was dominated by existing sellers who were price makers, it was difficult for new firms to enter the market and invest huge sums of capital to and distinguish its product from the prevailing ones. Many oligopolies have occurred by the combination or merger of two or more independent firms. Mergers resulted in higher market share. Also, as there is high entry barrier, firms may not choose to enter into the market and make losses. To distinguish its product from the existing product, the firm will have to bear huge expenses and may not be able to make profits in the short run. Owing to all these reasons, oligopolies came into existence.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 3

Question

Chapter 14, Problem aWYWL

To determine

What is Oligopoly and why does it occur.

Concept Introduction:

An industry with only few sellers is known as an oligopoly.

Expert Solution & Answer

Explanation of Solution

A monopoly is one firm, duopoly is two firms and oligopoly is two or more firms. Oligopoly is that kind of market structure in which the decisions of one firm are influenced by the decisions of other firms. An oligopoly isn’t necessarily made up of large firms. It includes a number of small firms, with few sellers, each seller is likely to be aware of the actions of others. Oligopolies are the price makers rather than price takers. Due to high barriers to entry, it becomes difficult for new firms to enter the market. The primary reason because of which oligopolies came into existence was because of large investment of capital. Since the market was dominated by existing sellers who were price makers, it was difficult for new firms to enter the market and invest huge sums of capital to and distinguish its product from the prevailing ones. Many oligopolies have occurred by the combination or merger of two or more independent firms. Mergers resulted in higher market share. Also, as there is high entry barrier, firms may not choose to enter into the market and make losses. To distinguish its product from the existing product, the firm will have to bear huge expenses and may not be able to make profits in the short run. Owing to all these reasons, oligopolies came into existence.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 4

Question

Chapter 14, Problem aWYWL

To determine

What is Oligopoly and why does it occur.

Concept Introduction:

An industry with only few sellers is known as an oligopoly.

Expert Solution & Answer

Explanation of Solution

A monopoly is one firm, duopoly is two firms and oligopoly is two or more firms. Oligopoly is that kind of market structure in which the decisions of one firm are influenced by the decisions of other firms. An oligopoly isn’t necessarily made up of large firms. It includes a number of small firms, with few sellers, each seller is likely to be aware of the actions of others. Oligopolies are the price makers rather than price takers. Due to high barriers to entry, it becomes difficult for new firms to enter the market. The primary reason because of which oligopolies came into existence was because of large investment of capital. Since the market was dominated by existing sellers who were price makers, it was difficult for new firms to enter the market and invest huge sums of capital to and distinguish its product from the prevailing ones. Many oligopolies have occurred by the combination or merger of two or more independent firms. Mergers resulted in higher market share. Also, as there is high entry barrier, firms may not choose to enter into the market and make losses. To distinguish its product from the existing product, the firm will have to bear huge expenses and may not be able to make profits in the short run. Owing to all these reasons, oligopolies came into existence.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 5

Chapter 14, Problem aWYWL

To determine

What is Oligopoly and why does it occur.

Concept Introduction:

An industry with only few sellers is known as an oligopoly.

Expert Solution & Answer

Explanation of Solution

A monopoly is one firm, duopoly is two firms and oligopoly is two or more firms. Oligopoly is that kind of market structure in which the decisions of one firm are influenced by the decisions of other firms. An oligopoly isn’t necessarily made up of large firms. It includes a number of small firms, with few sellers, each seller is likely to be aware of the actions of others. Oligopolies are the price makers rather than price takers. Due to high barriers to entry, it becomes difficult for new firms to enter the market. The primary reason because of which oligopolies came into existence was because of large investment of capital. Since the market was dominated by existing sellers who were price makers, it was difficult for new firms to enter the market and invest huge sums of capital to and distinguish its product from the prevailing ones. Many oligopolies have occurred by the combination or merger of two or more independent firms. Mergers resulted in higher market share. Also, as there is high entry barrier, firms may not choose to enter into the market and make losses. To distinguish its product from the existing product, the firm will have to bear huge expenses and may not be able to make profits in the short run. Owing to all these reasons, oligopolies came into existence.

Answer 6

Chapter 14, Problem aWYWL

To determine

What is Oligopoly and why does it occur.

Concept Introduction:

An industry with only few sellers is known as an oligopoly.

Expert Solution & Answer

Explanation of Solution

A monopoly is one firm, duopoly is two firms and oligopoly is two or more firms. Oligopoly is that kind of market structure in which the decisions of one firm are influenced by the decisions of other firms. An oligopoly isn’t necessarily made up of large firms. It includes a number of small firms, with few sellers, each seller is likely to be aware of the actions of others. Oligopolies are the price makers rather than price takers. Due to high barriers to entry, it becomes difficult for new firms to enter the market. The primary reason because of which oligopolies came into existence was because of large investment of capital. Since the market was dominated by existing sellers who were price makers, it was difficult for new firms to enter the market and invest huge sums of capital to and distinguish its product from the prevailing ones. Many oligopolies have occurred by the combination or merger of two or more independent firms. Mergers resulted in higher market share. Also, as there is high entry barrier, firms may not choose to enter into the market and make losses. To distinguish its product from the existing product, the firm will have to bear huge expenses and may not be able to make profits in the short run. Owing to all these reasons, oligopolies came into existence.

Answer 7

Chapter 14, Problem aWYWL

To determine

What is Oligopoly and why does it occur.

Concept Introduction:

An industry with only few sellers is known as an oligopoly.

Answer 8

Expert Solution & Answer

Explanation of Solution

A monopoly is one firm, duopoly is two firms and oligopoly is two or more firms. Oligopoly is that kind of market structure in which the decisions of one firm are influenced by the decisions of other firms. An oligopoly isn’t necessarily made up of large firms. It includes a number of small firms, with few sellers, each seller is likely to be aware of the actions of others. Oligopolies are the price makers rather than price takers. Due to high barriers to entry, it becomes difficult for new firms to enter the market. The primary reason because of which oligopolies came into existence was because of large investment of capital. Since the market was dominated by existing sellers who were price makers, it was difficult for new firms to enter the market and invest huge sums of capital to and distinguish its product from the prevailing ones. Many oligopolies have occurred by the combination or merger of two or more independent firms. Mergers resulted in higher market share. Also, as there is high entry barrier, firms may not choose to enter into the market and make losses. To distinguish its product from the existing product, the firm will have to bear huge expenses and may not be able to make profits in the short run. Owing to all these reasons, oligopolies came into existence.