ECON2302WrittenTopic2 - Writing Topic Oligopoly ECON...

Info icon This preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
Writing Topic: Oligopoly ECON 2302 (section number) Eric (last name) (last four of social) December 21, 2015
Image of page 1

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

View Full Document Right Arrow Icon
An oligopoly is any industry with a small number of producers (Krugman & Wells, 2013, p. 408). The producers in an oligopoly are referred to as oligopolists (Krugman & Wells, 2013, p. 408). The sort of competition that oligopolies engage in is called imperfect competition. Imperfect competition is where producers understand that that no one firm is going to have a monopoly, but they can still affect market prices by working together (Krugman & Wells, 2013, p. 408). A true example of an oligopoly is the carbonated beverage market which contains two oligopolies: Coca Cola and Pepsi (Krugman & Wells, 2013, p. 408). For oligopolies to exist, they must work on increasing returns to scale. Increasing returns to scale give bigger cost advantages to larger producers (Krugman & Wells, 2013, p. 408). Collusion is engaging in a cooperation between firms that jointly raises profits (Krugman & Wells, 2013, p. 409). Taking it a step up a notch, a cartel is an arrangement between producers that determines how much each producer is allowed to produce (Krugman & Wells, 2013, p.
Image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern