Oligopoly 2

OLIGOPOLISTIC
MARKET
GROUP 4.
MEMBERS:
 JOHN GAMBOA • ANA DUDANG
 FRANKLIN GAPASIN • FELICITIE CALICDAN
 JHUNMEL SABANGAN • PATRICIA TANDOC
 RAYMUND DE GUZMAN • ZAIRA PABLO
 MICAH FERRER • EDRALYN DALIOAN
 SHARON LUGTU
01
OLIGOPOLY
What Is an Oligopoly?
An oligopoly is a market structure with a small number of firms, none of
which can keep the others from having significant influence. The
concentration ratio measures the market share of the largest firms.
A monopoly is a market with only one producer, a duopoly has two firms,
and an oligopoly consists of two or more firms. There is no precise upper
limit to the number of firms in an oligopoly, but the number must be low
enough that the actions of one firm significantly influence the others.
01
EXAMPLES OF OLIGOPOLY
ENTER TITLE
The user can perform the
presentation on a projector
or computer, and the
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out and made into film.
The user can perform the

presentation on a projector
or computer, and the
powerpoint can be printed
out and made into film.
01
CHARACTERISTICS OF
OLIGOPOLY:
• High barriers to entry

• Price making power
• Interdependence of firms
• Differentiated products
• Non price competitions
02
1) HIGH BARRIERS TO ENTRY

It raises barriers for new entrants to enter into the respective sector.
2) PRICE MAKING POWER

ENTER
TITLE
In an oligopoly, dominant market players are influential enough to decide on
the price of products and services.
3) INTERDEPENDENCE OF FIRMS
It includes decisions made in concentrated markets, such as product prices,
quality standards, and production planning.
4) DIFFERENTIATED PRODUCTS
that is what turns out to be the unique selling proposition (USP) of the
respective brands in the oligopolistic industry.
5) NON PRICE COMPETITION

do not stress competing with each other on the pricing front.
TYPES OF OLIGOPOLY
• Pure oligopoly • Competitive oligopoly

• Imperfect oligopoly • Partial oligopoly
• Open oligopoly • Total oligopoly
• Closed oligopoly • Organized oligopoly
• Collusive oligopoly • Syndicated oligopoly
02
Oligopoly market industries or oligopolistic
strategies are classified into following types:
2.Imperfect oligopoly
1.PURE ILOGOPOLY Imperfect oligopoly is
Pure oligopoly is also known also known as
as perfect oligopoly. This differentiated oligopoly.
strategy has a homogeneous This industry has
product. For example, the product differentiation at
aluminum industry. the end. For example,
the talcum industry.
1 2 3 4
3.Open oligopoly
Open oligopoly refers to
4.Closed oligopoly
the market strategy Closed oligopoly is the opposite
where the new of open oligopoly. Here the entry
industries can enter in of new or other industries into the
the market and can market is strictly banned.
compete with the
existing industries.
5.Collusive oligopoly 6.Competitive oligopoly
Competitive oligopoly is the
Collusive oligopoly is basically opposite of collusive oligopoly
a cooperative market strategy. and basically a competitive
It occurs when few firms strategy. This type of oligopoly
collaborate to an occurs due to lack of
understanding in reference to understanding between the
the price and results of the industries of the market
products.
1 2 3 4
7.Partial oligopoly 8.Total oligopoly
also known as partial oligopoly.
In this strategy there exists an It is the opposite of partial
industry as the price leader. oligopoly and no particular
The situation when a particular industry or firm dominates the
firm or industry is more market. There is no price
powerful in the market as leadership in the market.
compared to other industries.
9.Organized oligopoly
As the name suggests this
is an organized structure of
oligopoly. In this strategy,
an association is formed to
fix prices, quotas, and
output.
1 2 3 4
10.Syndicated
oligopoly
is the opposite of
organized oligopoly. In this
strategy the industries are
allowed to sell their product
through a centralized
syndicate
03
HOW DOES AN
OLIGOPOLY MAXIMIZE
PROFIT?
The OLIGOPOLY MAXIMIZE
PROFIT by equating marginal
revenue with marginal cost, which
result in an equilibrium output of
UNIT and the equilibrium of
PRICE.
03
KINKED DEMAND CURVE
The user can perform

the presentation on a
projector or computer
ENTER TITLE
ADVANTAGE OF OLIGOPOLY
3. Competitive Prices
1. High Profits Being able to easily compare
Since there is such little prices forces these
competition, the companies companies to keep their
that are involved in the market prices in competition with the
have the potential to bring a other companies involved in
large amount of profits. the market.
2. Simple Choices 4. Better Information and
Having only a few companies Goods
that offer the goods or service Right along with price
that you are looking for makes competition, product
it easy to compare between competition plays a huge part
them and choose the best in a the oligopoly market
option for you. structure.
DISADVANTAGE OF OLIGOPOLY
1. Difficult To Forge A Spot 3. Fixed Prices Are Bad For

For small business and other Consumers
people with creative ideas in a While competitive prices come into
oligopoly market, the outlook for play, they are rarely very far apart
their business is grim. from any other company that they
could go with.
2. Less Choices 4. No Fear Of Competition

In many cases having to choose Often times the companies that are
a company in an oligopoly is like in the oligopoly market become very
choosing the lesser evil. settled with their business.
THANK YOU!
tysm sa pakikinig kit di namn kau nakinig.
REPORTER: GROUP 4

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OLIGOPOLISTIC

The user can perform the

• High barriers to entry

1) HIGH BARRIERS TO ENTRY

2) PRICE MAKING POWER

5) NON PRICE COMPETITION

• Pure oligopoly • Competitive oligopoly

KINKED DEMAND CURVE

The user can perform

1. Difficult To Forge A Spot 3. Fixed Prices Are Bad For

2. Less Choices 4. No Fear Of Competition

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