The Concept of an

Oligopoly
Harmeet Anand, Hiroki Osame, Hiroko
Taniguchi, and Keita Kim 
THE NATURE OF OLIGOPOLY
"A market form where there are only a few firms in the industry
but there are many buyers."

- Producers 
- Buyers 
- Products 
- Mutual Interdependence
- Price
- Competition
- Relationship between firms
- Economic Scale
GRAPHS
KINKED DEMAND CURVE
• Increase price = elastic
• Decrease price = inelastic
MARGINAL REVENUE CURVE
• Two different elasticities
• Disappears
MARGINAL COSTS CURVES
• When vertical, change in marginal costs will not affect the
price and quantity
NORMAL PROFIT
ABNORMAL PROFIT
LOSS
COMMON EXAMPLES
-Operating Systems : Apple, Microsoft

-Gaming Consoles : Nintendo, Sony, Microsoft

-Canada's wireless service : Rogers Wireless, Bell Mobility,  Telus

-UK's supermarkets : Tesco, Sainsbury's, Asda and Morrisons

-World wide food processing : Kraft Foods, PepsiCo and Nestle

-Airliners : Boeing and Airbus

-American TV : Disney/ABC, CBS Corporation, NBC Universal, Time Warner,

and News Corporation

-UK's detergent market : Unilever and Procter & Gamble

COMPARISON
Oligopoly Monopoly Perfect Competition Monopolistic Competition

- - Expand too much - Undifferentiated - Advertise and induce

Innovative/ creative products  consumers to spend more
- Experience
- Few firms = diseconomy of scale - Consumers have -No control in price
greater efficiency limited choice
- Increase in AC - Consumers suffer more
- BORING
- No competition, no
innovation
 INTRODUCING THE iHarpod
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OLIGOPOLY

A market form where there are only a few firms in the industry
but there are many buyers.
 
The kinked demand curve very clearly depicts the nature of an
oligopolistic market structure