null
US
Sign In
Sign Up for Free
Sign Up
We have detected that Javascript is not enabled in your browser. The dynamic nature of our site means that Javascript must be enabled to function properly. Please read our
terms and conditions
for more information.
Next up
Copy and Edit
You need to log in to complete this action!
Register for Free
73266
Oligopoly
Description
GCSE Economics Mind Map on Oligopoly, created by Javed Hussain on 06/05/2013.
No tags specified
economics
economics
gcse
Mind Map by
Javed Hussain
, updated more than 1 year ago
More
Less
Created by
Javed Hussain
over 11 years ago
74
0
0
Resource summary
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
Show full summary
Hide full summary
Want to create your own
Mind Maps
for
free
with GoConqr?
Learn more
.
Similar
Using GoConqr to study Economics
Sarah Egan
Economics
Emily Fenton
AN ECONOMIC OVERVIEW OF IRELAND AND THE WORLD 2015/16
John O'Driscoll
Economics - unit 1
Amardeep Kumar
Using GoConqr to teach Economics
Sarah Egan
General Notes for Imperfect Competition
Ashley Hay
Functions of Money
hannahcollins030
Comparative advantage
jamesofili
GCSE - Introduction to Economics
James Dodd
Market & Technology Dynamics
Tris Stindt
PMP Formulas
Krunk!
Browse Library