Oligopoly generally refers to monopolizing the market. "Oligopoly" competition refers to the competition like that of the merchants who monopolize the market. This kind of competition will generally bring a huge shock effect.
What does oligopoly mean?
Oligopoly is a market structure that contains both monopoly and competition factors, and is closer to complete monopoly. Its distinctive feature is that a few manufacturers monopolize the market of a certain industry, and the output of these manufacturers accounts for a high proportion of the total output of the whole industry, thus controlling the product supply of this industry. Oligopoly is also called double monopoly or duopoly. The formation of oligopoly is first determined by the production and technical characteristics of certain products. Oligopoly industries are often industries with highly concentrated production, such as steel, automobiles and petroleum. Secondly, all kinds of exclusive measures taken by oligopolistic manufacturers to maintain their own status, as well as * * * support policies for some oligopolistic manufacturers, can also promote the formation of oligopolistic market. Interdependence is the basic feature of oligopoly market. Because the number of manufacturers is small and the market share is large, no matter what, the behavior of one manufacturer will affect the behavior of the opponent and affect the whole market. Therefore, every oligarch attaches great importance to his opponent's attitude and response to his own strategy and policy when deciding his own strategy and policy. As manufacturers, oligarchs are independent business units with independent characteristics, but their behaviors influence and depend on each other. In this way, oligopoly manufacturers can reach collusion or cooperation in various ways and forms, and can sign agreements or tacit understanding.
What does "oligarch" mean?
It is a form of monopoly, in which a few enterprises in the industry have control over the whole industry, that is, they can control other enterprises in the industry except themselves, and get huge profits from it, which directly affects the national interests.
This is also the reason why Russia wants to crack down, because they affect the normal operation of the national economy and weaken its control.
I hope it helps you ~
The difference between oligopoly, oligopoly competition and monopoly competition
Oligopoly, also known as oligopoly and oligopoly, refers to the small number of sellers. In the oligopoly market, only a few manufacturers supply all or most of the products of the industry, and the output of each manufacturer accounts for a considerable share of the whole market, which has a decisive influence on the market price and output. For example: China Mobile, China Unicom, China Telecom, China Petroleum, China Petrochemical and China Offshore Oil.
Oligopoly competition is a mixture of competition and monopoly, and it is also imperfect competition. Under the condition of monopolistic competition, there are many manufacturers in the market, and their products are different. Under the condition of oligopoly competition, oligopoly enterprises are interdependent and influence each other.
Monopolistic competition: refers to many manufacturers selling similar but different products in the market. In real life, monopolistic market organizations are very common in retail and service industries, such as repair and candy retail.
What is an oligopoly market?
Oligopoly market, also known as oligopoly market, is a realistic mixed market between monopolistic competition and complete monopoly. Refers to the market structure in which a few enterprises control the production and sales of the whole market. These enterprises are called oligopolistic enterprises. It has the following characteristics:
1. Few manufacturers. There are only a few manufacturers in the market (when there are two manufacturers, it is called duopoly), and each manufacturer plays an important role in the market and has a considerable impact on the price of its products. 2. Interdependence. Any manufacturer must consider the reaction of competitors when making decisions, so it is neither a price maker nor a price receiver, but a price seeker. 3. The product is homogeneous or heterogeneous. Products are indistinguishable and highly interdependent. Known as a pure oligarch, it exists in industries such as steel, nylon and cement. There are differences in products and low interdependence, which is called difference oligarchy. It exists in automobile, heavy machinery, petroleum products, electrical appliances, cigarettes and other industries. 4. It's not easy to get in and out. It is quite difficult, even extremely difficult, for other manufacturers to enter. Because it is not only in terms of scale, capital, reputation, market, raw materials, patents, etc. It is difficult for other manufacturers to compete with the original manufacturers, and because the original manufacturers are interdependent and closely linked, it is difficult for other manufacturers not only to enter but also to quit.
Why is oligopoly more competitive than monopoly?
The market is divided into four types: perfect competition market, monopoly market, monopoly competition market and oligopoly market. The difference is: 1, there are many manufacturers in the perfectly competitive market, and the products are homogeneous. No manufacturer can influence the price, so it is easy to enter and leave the industry, and the economic benefit is the highest. 2. There is only one monopoly market manufacturer with unique products and no similar substitutes. Manufacturers can influence the market price to a great extent, and it is extremely difficult to enter and exit the industry, with the lowest economic benefits. 3. There are many manufacturers monopolizing the competitive market, and there are also differences between products. Manufacturers have a certain influence on the market price, so it is easier to enter and leave the industry and the economic benefits are higher. There are several manufacturers in the oligopoly market, and their products are different or indistinguishable. Manufacturers can influence prices to a considerable extent, so it is difficult to enter and exit the industry and the economic benefits are low.
What does oligarchy mean?
Oligopoly seller monopoly
Definition: Oligopoly refers to a market organization in which a few manufacturers control the production and sales of products in the whole market. Many industries in western countries are oligopolistic, such as the automobile industry and electrical equipment industry in the United States, which are controlled by several enterprises.
A few manufacturers produce and sell all or most of the products of an industry, and the output of each manufacturer accounts for a considerable share of the total output of the industry.
Oligopoly classification:
Differentiation by product: pure oligarchy and differentiated oligarchy
According to whether there are * * * media: independent oligarchs and colluding oligarchs.
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The main reasons for the formation of oligopoly market can be as follows: the production of certain products must be carried out to a considerable scale in order to obtain the best economic benefits (such as hydropower industry); The control of several enterprises in the industry on the supply of basic production resources needed for production (such as rare metal industry); * * * Control and support (for example, China Mobile, the phone bill is insanely high).
The difference between monopoly competition and oligopoly ~
Monopolistic competition refers to the market phenomenon that many manufacturers produce and sell similar goods with different quality. Its characteristics are: (1) There are many enterprises but the scale is relatively small; (2) The products are similar but different from each other, so the demand curve is inclined downward; (3) Enterprises are not restricted in access, and resources can be transferred between industries; (4) There are many small buyers. Oligopoly refers to a market state in which a few sellers (oligarchs) dominate the market. Oligopoly is a market structure that contains both monopoly and competition factors, and is closer to complete monopoly. Its remarkable feature is that a few manufacturers monopolize the market of a certain industry, and the output of these manufacturers accounts for a high proportion of the total output of the whole industry, thus controlling the product supply of this industry. The products of oligopolistic enterprises can be homogeneous or different. The former is sometimes called pure oligopoly, while the latter is called differentiated oligopoly. There are obvious barriers to entry in oligopoly market. This is a necessary condition for a few enterprises to occupy most of the market share, and it can also be said that the oligopoly market structure exists. The most important and basic factor is that these industries have obvious economies of scale. If these industries want to accommodate a large number of enterprises, the average cost of each enterprise will be high because of its small production scale. Economies of scale make large-scale production have a strong advantage, large companies are growing, and small companies can't survive, eventually forming a situation of fierce competition among a few enterprises. For enterprises trying to enter these storage industries, unless they can form a large production scale and occupy a considerable market share from the beginning, the excessive average cost will make them unable to compete with the original enterprises.
What does oligopoly mean?
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The word you said belongs to CFA vocabulary. Mastering CFA vocabulary can make you feel at home in CFA learning. The translation and meaning of this word are as follows: refers to the situation that the market of a commodity or service is controlled by a few companies.
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