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monopoly, oligopoly, and cartel

-Explain the difference between a monopoly and an oligopoly, and a cartel.
-Provide an example of a monopoly, an oligopoly, and a cartel.
-What are the welfare effects of monopolies and oligopolies.
-How does game theory explain the interactions of firms within oligopolies and cartels?
-What is the economic purpose of OPEC. What has happened to oil prices over the past five years?
-Synthesize the information gathered and tell the economic consulting firm which actions you think OPEC will take over the next year.

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Explain the difference between a monopoly and an oligopoly, and a cartel.
In a monopoly there is only one firm that supplies particular product/goods. In case of an oligopoly there are few sellers. In oligopoly, the sellers remain aware of the actions of other sellers. Their decisions are influenced by those of others. In an oligopoly there is no formal agreement among the firms. A cartel is an agreement among competing firms. This is formal agreement among manufacturers or producers to fix prices, and the quantity produced.

Provide an example of a monopoly, an oligopoly, and a cartel.
An example of a monopoly is Iarnród Ã?ireann in Ireland. There is no other railway in Ireland. An example of oligopoly is the film industry in the US; there are six studios that control 90% of the US film revenues. The example of a cartel is the Organization of Petroleum Exporting Countries. This is a cartel of oil selling countries.

What are the welfare effects of monopolies and oligopolies?
The welfare effect of the monopoles and oligopolies is negative. The reason for this is that in case of monopoles and oligopolies ...

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