Analysis Of Pure Competition, Oligopoly And Monopoly

“Once again, stock markets have been threatened with extinction for almost 75 years, and I have found that stock markets are harder to kill than roaches”. Arthur Levitt. The irony of that sentence, my friend and I just purchased a combat spray to get rid of roaches at his house (lol). As a child growing my mentor used to always mention this proverb to me “where there 's a will, there 's a way”. Meaning, if you truly want to do something, you will find a way to do it, in spite of obstacles. "Righty tighty lefty loosy!" with that being said, anything that has a strength also have a weakness that comes along with it. Whether we talking about Pure competition, Oligopoly and Monopoly.

What is Pure Competition? Pure competition, is an economic situation where a market has many sellers, none of which has a significant amount of market power. For example, in a pure completion there are no berries for one firms to come in, or hop out, meaning new firms can enter the market easily. The net effect of

As I mention before in monopoly paragraph where my uncle threating dish with direct T.V. on the other hand, Dish and direct might be working as a cartel, where group of firms that have a formal agreement to collude to produce the monopoly output and sell at the monopoly price. That can be a strength because both oligopolist benefits of the price, and it can also be a weakness because of the duopoly factor. Each oligopolist, however, must worry that while it is holding down output, other firms are taking advantage of the high price by raising output and earning higher profits. In controversial, let say dish and direct not working with each other on duopoly factor. A consumer can weakened an oligopolist with the kinked demand curve; oligopoly firms commit to match price cuts, but not price