Oligopoly. Oligopoly A market structure in which a small number of interdependent firms compete. The approach we use to analyze competition among oligopolists is called game theory . 1. LEARNING OBJECTIVE. 13 - 1. Examples of Oligopolies in Retail Trade and Manufacturing.
13 - 1
Examples of Oligopolies in Retail Trade and ManufacturingOligopoly and Barriers to Entry
Barrier to entryAnything that keeps new firms from entering an industry in which firms are earning economic profits.
Economies of Scale Help Determine the Extent of Competition in an IndustryOligopoly and Barriers to Entry
Economies of scaleEconomies of scale exist when a firm’s long-run average costs fall as it increases output.
LEARNING OBJECTIVEUsing Game Theory to Analyze Oligopoly