Econ Journal Entry 2

Econ Journal Entry 2 - The Ski Industry Bode Miller, a...

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The Ski Industry Bode Miller, a famous skier known worldwide once said, “When you back off, it's easier to do mistakes. For me it's better to ski fast.” Without his custom Rossignol skis, Bode Miller would not have been able to capture four gold medals and three silver medals in super-g and downhill in the Olympics. Due to the ski industry, people from young to old have been able to get there thrill of the sport. With very few major ski companies manufacturing skis, the ski industry is considered an oligopoly. The ski industry is an oligopoly because there are not many firms in the market, the product they are producing is similar, and there are many barriers to look at when entering and exiting the market. With around ten major ski companies controlling the market and all producing a similar product, this market is considered an oligopoly. An oligopoly is a market in which control over the supply of a commodity is in the hands of a small number of producers and each one can influence prices and affect competitors. There are many barriers to entry and exiting of this market. The three main barriers are pricing and strategy, economies of scale, and ownership and control of resources. Since ownership and control of resources does not apply to this situation the first two barriers are the main barriers. Some other barriers include having a product that can
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Econ Journal Entry 2 - The Ski Industry Bode Miller, a...

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