Question

Oligopoly and Monopolistic Competition

1. Review at least five (5) articles on Oligopoly and Monopolistic Competition. Complete the following activities:

2.    Summarize all five (5) articles in 300 words or more. Please use your own words. No copy-and-paste. No Wikipedia articles

3.    Discuss at least 3 different concepts presented in the articles. As a manager, how would you apply the three (3) concepts you identified in a production/service organization. Support your discussion with appropriate examples from your own work related experience or research. Please note that I do check originality. Copy-and-paste will result to zero grade

Answer 1

Oligopolistic firms have market structure where small number of relatively larger size firms present with significant entry barriers. However monopolistic competition is large number of relatively smaller firms with relative freedom if entry and exit barriers.

The HHI index for Oligopolistic firms is higher and for monopolistic competition is lower which gives fair idea of market concentration.

A good example of monopoly competition is Logistics sector where many lesser known generic firms being present. Another good example of Oligopolistic market structure is Telecommunications sector in India comprising of four large firms Vodafone Idea, Airtel, Reliane Jio, BSNL MTNL.

Oligopolistic market structure is best for profit maximization and monopolistic competition is best for product innovation . Oligopolistic market structure is best regarded for first mover and second mover advantages .

An important feature of monopoly competition is human capital differentiation, market differentiation, and physical product differentiation.

As manager its important to understand that Oligopolistic competition is best for profit maximization however requires significant capital expenditure and economies of scale to achieve sizeable market concentration .