GROUP 5&6
Group 5 Azizah Rahmawati Antih Mariah W Ning Zakiyyah Rosa Rosanalia Hafiz Mukti Gani Group 6 Renita Nur Indah Swari Yeheskiel Sembiring Irfan S Via Annisah Sarinastiti Anis Saidah
OLIGOPOLY MARKET
Oligopoly market: 1. market structure that consists of only some manufacturers between 2-10 companies. 2. the number of companies that dominate the market, more than two but not many (oligos = few) so the action of a single entrepreneur will affect policy from other entrepreneurs. 3. a. pure oligopoly b. differentiated oligopoly
a.
b.
consists of several giant companies that controls more much of the market (70-80%) from the total production or value sales, and in addition there are also be some small companies. Some the company greatly influence each other. mutual independence
There are some sellers Goods that sold are homogeneous or shades different New company diffucult to enter Requires advertising There is a market leader The selling price is not easily changed
Pure Oligopoly: product sthat solds on oligopoly markets are similar Example: cement market, manufacturers of gasoline. Differential Oligopoly: Goods that are solds can be distinguished. Example: car market, the motorcycle market.
encourage the development of technology and innovation Giving freedom of choice for buyers. Being able to do research and product development. More attention to customer satisfaction because of the seller competition. The implementation of new technologies.
1.
2.
lack of efficiency in use of resources Creating imbalance income distribution. Stable prices are too high and could encourage the emergence of inflation. Could arise exploitation of buyers and owners of factors of production. The new company difficult to penetrate / enter Can evolve towards monopoly.
A large number of dominant firms, with some of the other small A standardized and differentiated products The power of dominant firms on prices, but the fear of retaliation The power of dominant firms on prices, but the fear of retaliation The use of non-price competition due to extensive ketakutanakan price war
- Prices of products sold relatively the same - A superior product differentiation is the key to success - It is difficult to enter the market because it takes a great resource - Changes in prices will be followed by other companies
Economies of scale in the production of certain goods Business cycles that eliminate weaker competitors The advantages of the companies that joined other barriers such as the development of technology and advertising
The kink in the demand curve at price P and output Q means that there is a discontinuity in the firm's marginal revenue curve. If we assume that the marginal cost curve in is cutting the MR curve then the firm is maximising profits at this point.
In the bottom diagram, we see that a rise in marginal costs will not necessarily lead to higher prices providing that the new MC curve (MC2) cuts the MR curve at the same output. The kinked demand curve theory suggests that there will be price stickiness in these markets and that firms will rely more on non-price competition to boost sales, revenue and profits
DANKE SEHON