Market monopoly and Oilygopoly market Essay Example | Topics and Well Written Essays - 1000 words

Market monopoly and Oilygopoly market - Essay Example In market monopoly the producer is in a state to bargin with government and the customers. He can set his own arbitrary policies and everyone is bound to follow as there is no other option In market monopoly the producer spends very minimum amount on marketing and advertising In market monopoly the producer makes enough profit which can be further invested for the betterment of the company Disadvantages of Market monopoly Since the producer can set price according to his own wish as there is no competition, this can be harmful for the customers, they tend to pay high prices Exploitation of labor can take place in market monopoly In certain cases absence of competition leads to inefficiency and the company doesn’t progress much. There is not much variety available for the customers No substitutes available Oilygopoly market: Oligopoly is a common market form. In Oilygopoly market there are more than two producers who are manufacturing the same product with very less difference. There is cut throat competition in the market. Characteristics of Oilygopoly market Because there are more than two producers of the same product and there is cut throat competition, each producer keep notice of what other is doing. They are likely to aware of each other’s actions and that’s how they set their policies and market strategies for example, Company A launched a new advertisement campaign to promote their product. Now even Company B and Company C will launch some new market strategy or advertisement campaign to ensure that their sells don’t drop because of company’s a new advertisement campaign. The decision of one producer... Micro economics deal with individuals and how they earn their livelihood whereas macroeconomics deals with aggregate issues or the economy as a whole. Macroeconomics consists of concepts that can be applied to the entire world. according to Economic Glossary â€Å"Macroeconomics is derived from (from "macro(o)-" meaning "large" + "economics") is a branch of economics dealing with the performance, structure, behavior, and decision-making of the entire economy. This includes a national or global economy". In economics a financial market is a place which allows buying and selling activities, there are many manufacturers and consumers available in the market. There are many products available for the same type hence that raises competition in the market. There are different types of competition and different types of markets available in an economic sense. Let us discuss the different market structures in detail market monopoly: The word â€Å"monopoly† means one or â€Å"the only†. The monopolistic market is when there is only one producer and there is no one else who manufactures the same product. A market monopoly exists when the single firm/company is the only supplier or producer of a certain product. The monopolistic market is when there is only one producer and there is no one else who manufactures the same product whereas in Oligopoly market there are more than two producers who are manufacturing the same product with very less difference. In market monopoly the producer has the divine power and market share, he can set his own arbitrary policies.