Purchase Solution

Oligopoly Market structure

Not what you're looking for?

Ask Custom Question

Testifying at a price fixing trial involving Cargill and the market for chicken growth hormone, in which Cargill is one of only three firms worldwide, an executive said: "It's an oligopoly. When one firm changes price, they all do... usually within minutes."

Why is it not surprising to find that in an oligopoly which sells a basically undifferentiated product like chicken growth hormone, all the firms change prices simultaneously, even if there is no explicit price fixing?

Purchase this Solution

Solution Summary

This discusses the Oligopoly Market structure

(The solution has only Book reference)

Solution Preview

Oligopoly Market structure
The word is derived from the Greek for few sellers.
This structure exists when a few sellers of products or services control the supply of a large proportion of the market. These firms tend to set similar prices and create more difficult barriers for entry into the market. In oligopoly is market form in which a market is dominated by a small number of sellers (oligopolist).

Why ...

Purchase this Solution


Free BrainMass Quizzes
Economics, Basic Concepts, Demand-Supply-Equilibrium

The quiz tests the basic concepts of demand, supply, and equilibrium in a free market.

Economic Issues and Concepts

This quiz provides a review of the basic microeconomic concepts. Students can test their understanding of major economic issues.

Pricing Strategies

Discussion about various pricing techniques of profit-seeking firms.

Elementary Microeconomics

This quiz reviews the basic concept of supply and demand analysis.

Basics of Economics

Quiz will help you to review some basics of microeconomics and macroeconomics which are often not understood.