Advantages And Disadvantages Of Oligopoly

1118 Words5 Pages
Are types of markets important for economy ? Why is market important to economy ? Nowadays, developing and growing in the World , economy is the most basic element for countries. Economy is independent so Each country has own economy therefore Each economy has a market. Market is an institution the facilities the buying,selling and grading goods and service. Market is essantial for new order world .The most important factor are buyers and sellers.Sellers are Buyers meet in the market so they trade with each other.İn this way ,Money flow occurs There are all types of buyers and sellers in the market.On the other hand, The primary goal is satisfaction of people in market.there are buyers,sellers,producers in market and they…show more content…
oligopoly firms produce diffrent product so products are not homegenous such as automobile , machine, cigaretties.But in diffrentiated oligpoly has diffrent advertising, sales policy,and trade name.Full oligopoly is a oligpol group.Some firms create this group and they evaluate lower prices ,higher price ,production etc.Partial oligopoly , That's one big companies dominate the market and other small firms will determine price policy.There are…show more content…
Lastly, monopolistic competition is the market structure.There are many buyers and sellers in this market.Competition is very high among firms because they sell diffrent product.However every firms has components of the produced goods, quality, usage, packaging format, appearance, is different from other producer.This stuation causes market fragmentation.the most important features of compared price. in competition market, product can substitute for other product actually products are similar but firms try to shows different but people buy these product because they made successful advertising. there are two types of monopolistic competition.These are short-run competiton and long-run competition.İn short run , profit is maximized by product.but marginal cost and marginal revenue must be equals.İn long-run , entry and exit are easy for the firms.If more entry

More about Advantages And Disadvantages Of Oligopoly

Get Access