Writing Assignment #2 Essay Example | Topics and Well Written Essays - 500 words - 4

Writing Assignment 2 - try on ExampleProducts in oligopolistic market structures will unremarkably have very fewer or no substitutes as in the case of oil. The automobile industry in the world also evidences oligopolistic tendencies with a few large car manufactures selling similar auto models across the world. In most cases, players in much(prenominal) industries are torn between competing separately to win the market and coming together to create a monopolistic situation. Normally, the latter case never works as most companies rebrand constantly to differentiate themselves from their competitors. This is all the way seen in the automobile industry where different auto makers are customizing their brands to suite specific categories of people in the market.In a duopoly market structure, where the market players are limited to dickens, the common situation is normally co achievement between them so as to limit output to the monopoly style (Perloff 78). In such a case, profit is maximized as the price becomes much greater than the marginal cost. A case in point lies in the operation of Coca-Cola and Pepsi cola which operate in a duopoly situation. Most duopolies are created out of collusion between two or more players who agree to jointly set the price and manage output. Production in that is usually more than in a monopolist but less than in the in the completive market. In the akin vein, some duopolies operate as cartels where strict cooperation is the order of the day.Price determination in oligopolistic market environments is eternally the prerogative of the market players. This arises since these players are normally big enough to influence prices in the market foreign in competitive market environments. In any case, prices in such markets are not inflexible by the interaction of supply and demand but are a function of the cooperation between the competing firms. such a pricing strategy is known to create myriad inefficiencies in the market as u sually evidenced in the oil industry where the need to rake in more profits