Documentos de Académico
Documentos de Profesional
Documentos de Cultura
and Oligopoly
Prepared by:
Grade 12 – ABM B
Group #2
Leader:
Pangilinan, Shaira C.
Members:
Carpio, Rhendy M.
Castro, Izza Adriana H.
Lugtu, Beia Kathleen P.
Ronquillo, Niaca Gian N.
Yumul, Julie Anne O.
Capinpin, Bin Jess Christian A.
Dado, Julli T.
Galang, Rommel L.
Manabat, John Michael T.
Melo, Arvin M.
Santos, Jerome G.
Monopolistic Competition
Definition
Key characteristics
• Many buyers and sellers (same as perfect competition)
• Product differentiation
• Unrestricted entry and exit (same as perfect competition)
Characteristics of Monopolistic Competition
• Each firm makes independent decisions about price and output, based on its
product, its market, and its costs of production.
• The entrepreneur has a more significant role than in firms that are perfectly
competitive because of the increased risks associated with decision making.
• There is freedom to enter or leave the market, as there are no major barriers
to entry or exit.
1. High Profits
Since there is such little competition, the companies that are involved
in the market have the potential to bring a large amount of profits. The
services and goods that are controlled through oligopolies are
generally highly needed or wanted by the large majority of the
population.
2. Simple Choices
Having only a few companies that offer the goods or service that you are
looking for makes it easy to compare between them and choose the best
option for you. In other markets it can be difficult to thoroughly look at all
of the competitors to compare pricing and services offered.
3. Competitive Prices
Being. able to easily compare prices forces these companies
to keep their prices in competition with the other companies
involved in the market. This is a great benefit for the consumers
because prices continually go lower as other companies lower
there prices.
2. Less Choices
In many cases having to choose a company in an oligopoly is like
choosing the lesser evil. The consumers have very limited choices and
options for the services that they want. This is one of the biggest
pitfalls of a oligopoly.
3. Fixed Prices Are Bad For Consumers
While competitive prices come into play, they are rarely very
far apart from any other company that they could go with. This
is because the businesses and corporations that are part of the
market agree to fix prices. Meaning there is a set limit for just
how low prices can go, forcing consumers to pay high prices
no matter what.
4. No Fear Of Competition
Often times the companies that are in the oligopoly market
become very settled with their business. The profits and the
way they run are guaranteed to work, so they no longer feel
the need to come up with creative or innovate new ideas.
STARBUCKS COFFEE
Monopolistic Competition
LAXA HARDWARE
Oligopoly
NIKE
Monopolistic Competition
JOLIBEE
Monopolistic Competition
That ends the presentation,
Thank you for listening!