Oligopoly

------------------------------------------------- INTRODUCTION TO MARKETS Market structure is best defined as the organisational and other characteristics of a mart. The focus on those characteristics which affect the nature of competition and pricing but it is important not to surface too much emphasis simply on the foodstuff share of the existing firms in an industry. Traditionally, the most important features of market structure are: * The number of firms including the scale and extent of un cognise competition * The market share of the largest firms measured by the concentration ratio * The nature of cost that is the potential for firms to exploit economies of scale and also the armorial bearing of sunk costs which affects market contestability in the long term * The spirit level to which the industry is vertically integrated: Vertical integrating explains the movement by which different stages in production and distribution of a product are under the ownership and control of a single enterprise. A good example of vertical integration is the oil industry, where the major oil companies own the rights to extract from oilfields, they glide by a fleet of tankers, operate refineries and have control of sales at their own filling stations.

* The extent of product eminence which affects cross-price elasticity of demand * The structure of buyers in the industry  * The turnover of customers (some epochs known as market churn) that is how many customers are active to switch their supplier over a given time period when market conditions change. The rate of customer churn is impact by the degree of consumer or brand loyalty and the work of persuasive advertising and marketing ------------------------------------------------- OLIGOPOLY OLIGOPOLY is a market structure where on that point are a few firms controlling the supply of the goodness in the market. These firms have the power to influence the price of the trade good and thus, directly affect the... If you want to get a liberal essay, order it on our website: Orderessay

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