31 Oct Oligopolistic Industries
An oligopoly is characterized by a relatively small number of firms offering a similar product or service. Oligopoly products may be branded, as in soft drinks, cereals, and athletic shoes, or unbranded, as in crude oil, aluminum, and cement. The main distinction of oligopoly is that the number of firms is small enough that actions by any individual firm on price, output, product style, quality, the introduction of new models, and terms of sale has an impact on the sales of other firms in the industry. Review the Table 12.1 (pg. 416), select a dominant single firm – Athletic shoes(Nike), duopoly firm- Appliances (Best Buy), and triopoly firm – Tripoly Rental Cars (Enterprise) and discuss if you foresee any weaknesses in three firms you selected that would allow entrance into this market or if one of the firms has enough strength to become a monopoly? The response should be around 300 words with in-text citations and follow APA format.
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