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Oligopoly
Beschreibung
GCSE Economics Mindmap am Oligopoly, erstellt von Javed Hussain am 06/05/2013.
Keine Merkmale angegeben
economics
economics
gcse
Mindmap von
Javed Hussain
, aktualisiert more than 1 year ago
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Weniger
Erstellt von
Javed Hussain
vor mehr als 11 Jahre
74
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Zusammenfassung der Ressource
Oligopoly
market is dominated by a few lrge frms
features
interdependence
e.g i 1 firm invests in TV ads others R likely 2 loose sales
barriers 2 entry
helps firms 2 D average costs and I prfits
new entants R attracted by profits and dominance is reduced
price rigidity
price stays same 4 long time so there wont be price war and a D in sales
if 1 changes price others must follow
non price competition
e.g nectar points
helps 2 I brand awareness and I sales
economies of scale
lrge frms can do this but small cant so moves them away
collusion
whre big frms set up agreemnts 2 restrict competiton
price fixing
when all firms agree 2 do this
restirct output
illeagal in many countries
advantages
economies of scale
decrease in costs can be passed 2 consumr
price stability
frms want 2 avoid price war(cos they might make losses) and i 1 does others have 2 keep profits
consmrs have cheap prices as a result
survivors may also I costs
more certinty
choice
more choice + competition
competition
new products/brands
also 2 niche mrkt
I barriers 2 entry
disadvantages
big threat of a collusion
cartel might happen
where a group of firms/countries agree on output levels and price in mrkt
frms may pay too much attention on competition they will I price
e.g cadbury schweps spent 700 million on advrtisin which increase costs 4 consur
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