Oligo

Oligopolies Economists argue that competition between businesses is important to markets, working to the expediency of consumers, and what happens when there arent many businesses doing the competing? Does the economic model gleam apart? Listen Dr. Mike Walden, North Carolina Cooperative Extension economic expert in the College of Agriculture and Life Sciences at N.C. State University, responds: Well, the war-ridden part of the model can fall apart. And we really perk up a name for industries where you have only a smattering of businesses competing, and we call that as you mentioned oligopoly. Two good examples, the U.S. automobile pains in the 1950s, where you had essentially three or four companies interchange all the cars to Americans, and also here more closer to family unit would be the tobacco companies, the cigarette companies. Now, firms in an oligopoly can compete, but the worry is they wont. Instead of competing, they will cooperate. And that cooperation can lead to higher prices for consumers.

Now, actually there are laws on the books against cooperation between firms instead of competition. Those laws are strictly enforced. But oligopolies have actually become less of a power today because of applied science and globalization. Again, reckon of our auto companies. Now they have to compete with auto companies around the world. And thats good tidings for consumers because more competition in the main means lower prices. But its sort of bad news if you are one of those old companies, because today I think its much harder to successfully run a business. If you want to repulse a full essay, order it on our website: Ordercustompaper.com

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