Oligopolies Flashcards
1
Q
Oligopoly
A
Market dominated by a few large firms
2
Q
Interdependence
A
Where the action of one country or large firm will have a direct effect on others
3
Q
Price war
A
Where one firm in the industry reduces prices causing others to do the same
4
Q
Niche market
A
Market for a product or service without many buyers, but companies may still make a good profit in it
5
Q
Features of an oligopoly
A
- Few firms
- Large firms dominate
- Differentiated products
- Barriers to entry
- Collusions
6
Q
Non price competition examples
A
- Advertisring
- Promotions
- Loyalty cards
- Competitions
- Branding
- Buy One Get One Free
7
Q
Advantages of oligopolies
A
- More choice
- Better quality
- Economies of scale
- Innovation
- Price wars
8
Q
Disadvantages of oligopolies
A
- Collusions
- Cartel formations
- Barriers to entry
- Price fixing
- Reduced competition
