ECON112-4-08-Oligopolies

ECON112-4-08-Oligopolies - ECON112,4/-/08 OLIGOPOLIES...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
Sheet1 Page 1 ECON112,4/--/08 OLIGOPOLIES product differentiation- products in real life are diffent, or at least perceived to be so entry barriers- obstacles that prevent firms from entering markets e.g. opening a pizza parlor has less of an impact done by entry barriers than, say, starting your own Coca-Cola economies of scale- cost advantages that a firm obtains due to expansion e.g. Coca-Cola having huge plants leads to them having lower production costs diseconomies of scale- similar to economies of scale, but expansion leads to higher costs e.g. Coca-Cola is too big, so workers have trouble communicating, there are too many higher-level managers, etc. economies of scale lead to expansion, diseconomies of scale lead to breaking down of firm mergers- companies combine, leading to large firms ADVANTAGES OF LARGE FIRMS advertising: big firms have easy advertising access non-recoverable costs are costs associated with advertising, as you cannot get advertising money back as you can by selling your store or machinery
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 04/12/2008 for the course ECON 112 taught by Professor Minkler during the Spring '08 term at UConn.

Page1 / 2

ECON112-4-08-Oligopolies - ECON112,4/-/08 OLIGOPOLIES...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online