oligopoly market. meaning and defenation.

1. BHUSAWAL ARTS, SCI & P.O. NAHATA COMMERCEE
COLLEGE BHUSAWAL
Presented by :
Sanket Bhatia.
OLIGOPOLY

2. Introduction
• The word oligopoly is derived from two Greek
words that is “Oligo & Poly.” Oligo means few &
Poly means seller it means that there are few
sellers in the oligopoly market .
• Oligopoly market is found in few commodities
forexample: steal, car, scooter, television sets, air
conditioner etc.
• A market situation where there are few sellers in
the market selling homogeneous or
differentiated products.

3. Importance of Study.
• To study the market and control total supply in
the market.
• To study similar or different product in market.
• By advertising and selling cost they try to show
that their product is superior than other
products.
• To study prof. Sweezy king demand curve for
their products.

4. Definition
Types of
Advantages
Disadvantages
Price determination factor
Conclusion
Learning Objectives

5. Research Methodology
• The data collected is secondary data.
• Books
• Notes

6. DEFINITION
A situation in which a particular
market is controlled by a small group of
firms.
An oligopoly is much like a
monopoly, in which only one company
exerts control over most of a market. In an
oligopoly, there are at least two firms
controlling the market.

8.  Pure Oligopoly
 Imperfect Oligopoly
If the firms produce homogeneous products, then
it is called pure or perfect oligopoly
If the firms produce differentiated products, then it
is called differentiated or imperfect oligopoly

9.  Cooperative oligopoly
 Non Cooperative oligopoly
If the firms cooperate with each other in determining price or
output or both, it is called cooperative oligopoly.
If firms in an oligopoly market compete with each
other, it is called non-cooperative oligopoly.

10. Advantages
 Large firms having strong hold over the market are
able to make huge profits as there are few players in
the market.
 Easy price comparison forces companies to set
their prices competitively which is a positive point
for customers.
 High profits generated by the companies can be used
for innovation and development of new products and
processes.
 Oligopoly helps in lowering the average cost of
production of goods,

11. Disadvantages
With the presence of little competition,
dominant companies may not think of
improving their products.
New firms cannot enter the market
easily due to various barriers of entry.
High concentration reduces
consumer choice.
Oligopolists may be allocatively and
productively inefficient.

12. Price determination factor
C point is BEP
No profit No loss

13. Reference
• General Economics ( ICAI )
• Own Notes
• College Library
• Introduction to Microeconomics by Ranger
Frisch.

14. Conclusion
In oligopoly over all marker hold by few firm
are able to make huge profits and firm make
decision to beat the competition
FEW MARKET
STRUCTURES
OLIGOPOLY

15. Thank You