Economics Oligopoly

An oligopoly is a market form in which a market or industry is dominated by a small number of sellers (oligopolists).[citation needed] A general lack of competition can lead to higher costs for consumers. Because there are few sellers, each oligopolist is likely to be aware of the actions of the others. The decisions of one firm influence, and are influenced by, the decisions of other firms. Strategic planning by oligopolists needs to take into account the likely responses of the other market participants. Characteristics

Profit maximization conditions: An oligopoly maximizes profits by producing where marginal revenue equals marginal costs. Ability to set price: Oligopolies are price setters rather than price takers. Entry and exit: Barriers to entry are high. The most important barriers are economies of scale, patents, access to expensive and complex technology, and strategic actions by incumbent firms designed to discourage or destroy nascent firms. Additional sources of barriers to entry often result from government regulation favoring existing firms making it difficult for new firms to enter the market. Number of firms: "Few" a "handful" of sellers. There are so few firms that the actions of one firm can influence the actions of the other firms. Long run profits: Oligopolies can retain long run abnormal profits. High barriers of entry prevent sideline firms from entering market to capture excess profits. Product differentiation: Product may be homogeneous (steel) or differentiated (automobiles). Perfect knowledge: Assumptions about perfect knowledge vary but the knowledge of various economic factors can be generally described as selective. Oligopolies have perfect knowledge of their own cost and demand functions but

their inter-firm information may be incomplete. Buyers have only imperfect knowledge as to price, cost and product quality. Interdependence: The distinctive feature of an oligopoly is interdependence. Oligopolies are typically composed of a few large firms. Each firm is so large that its actions affect market conditions. Therefore the competing firms will be aware of a firm's market actions and will respond appropriately. This means that in contemplating a market action, a firm must take into consideration the possible reactions of all competing firms and the firm's countermoves. It is very much like a game of chess or pool in which a player must anticipate a whole sequence of moves and countermoves in determining how to achieve his or her objectives. For example, an oligopoly considering a price reduction may wish to estimate the likelihood that competing firms would also lower their prices and possibly trigger a ruinous price war. Or if the firm is considering a price increase, it may want to know whether other firms will also increase prices or hold existing prices constant. This high degree of interdependence and need to be aware of what other firms are doing or might do is to be contrasted with lack of interdependence in other market structures. In a perfectly competitive (PC) market there is zero interdependence because no firm is large enough to affect market price. All firms in a PC market are price takers, as current market selling price can be followed predictably to maximize short-term profits. In a monopoly, there are no competitors to be concerned about. In a monopolistically-competitive market, each firm's effects on market conditions is so negligible as to be safely ignored by competitors. Non-Price Competition: Oligopolies tend to compete on terms other than price. Loyalty schemes, advertisement, and product differentiation are all examples of non-price competition.

Demand curve

Above the kink, demand is relatively elastic because all other firms' prices remain unchanged. Below the kink, demand is relatively inelastic because all other firms will introduce a similar price cut, eventually leading to a price war. Therefore, the best option for the oligopolist is to produce at point E which is the equilibrium point and the kink point. This is a theoretical model proposed in 1947, which has failed to receive conclusive evidence for support.

In an oligopoly, firms operate under imperfect competition. With the fierce price competitiveness created by this sticky-upward demand curve, firms use non-price competition in order to accrue greater revenue and market share. "Kinked" demand curves are similar to traditional demand curves, as they are downward-sloping. They are distinguished by a hypothesized convex bend with a discontinuity at the bend"kink". Thus the first derivative at that point is undefined and leads to a jump discontinuity in the marginal revenue curve. Classical economic theory assumes that a profit-maximizing producer with some market power (either due to oligopoly or monopolistic competition) will set marginal costs equal to marginal revenue. This idea can be envisioned graphically by the intersection of an upward-sloping marginal cost curve and a downward-sloping marginal revenue curve (because the more one sells, the lower the price must be, so the less a producer earns per unit). In classical theory, any change in the marginal cost structure (how much it costs to make each additional unit) or the marginal revenue structure (how much people will pay for each additional unit) will be immediately reflected in a new price and/or quantity sold of the item. This result does not occur if a "kink" exists. Because of this jump discontinuity in the marginal revenue curve, marginal costs could change without necessarily changing the price or quantity. The motivation behind this kink is the idea that in an oligopolistic or monopolistically competitive market, firms will not raise their prices because even a small price increase

will lose many customers. This is because competitors will generally ignore price increases, with the hope of gaining a larger market share as a result of now having comparatively lower prices. However, even a large price decrease will gain only a few customers because such an action will begin a price war with other firms. The curve is therefore more price-elastic for price increases and less so for price decreases. Firms will often enter the industry in the long run. Oligopoly Is Widespread Businesses that are part of an oligopoly share some common characteristics: They are less concentrated than in a monopoly, but more concentrated than in a competitive system. There is still competition within an oligopoly, as in the case of airlines. Airlines match competitors air fares when sharing the same routes. Also, automobile companies compete in the fall as the new models come out. One will reduce financing rates and the others will follow suit. The businesses offer an identical product or services. This creates a high amount of interdependence which encourages competition in non price-related areas, like advertising and packaging. The tobacco companies, soft drink companies, and airlines are examples of an imperfect oligopoly. Industries which are examples of oligopolies include: Steel industry Aluminum Film Television Cell phone Gas There are: Four music companies control 80% of the market - Universal Music Group, Sony Music Entertainment, Warner Music Group and EMI Group

Six major book publishers - Random House, Pearson, Hachette, HarperCollins, Simon & Schuster and Holtzbrinck Four breakfast cereal manufacturers - Kellogg, General Mills, Post and Quaker Two major producers in the beer industry - Anheuser-Busch and MillerCoors Two major providers in the healthcare insurance market - Anthem and Kaiser Permanente

POP
Population of goa Goa is India's smallest state by area and the fourth smallest by population. Located in West India in the region known as the Konkan, it is bounded by the state of Maharashtra to the north, and by Karnataka to the east and south, while the Arabian Sea forms its western coast. Goa is India's richest state with a GDP per capita two and a half times that of the country as a whole. It was ranked the best placed state by the Eleventh Finance Commission for its infrastructure and ranked on top for the best quality of life in India by the National Commission on Population based on the 12 Indicators. Panaji is the state's capital, while Vasco da Gama is the largest city. The historic city of Margao still exhibits the cultural influence of the Portuguese, who first landed in the early 16th century as merchants and conquered it soon thereafter. Goa is a former Portuguese colony, the Portuguese overseas territory of Portuguese India existed for about 450 years until it was annexed by India in 1961 . Goans comprise of a predominantly Hindu population followed by Roman Catholic population and small Muslim community.Hinduism in Goa is divided into many different castes and sub-castes, known as Jatis. They use their village names to identify their clans, some of them use titles. Some are known by the occupation their ancestors have been practicing; Nayak, Borkar, Raikar, Prabhu, Kamat, Lotlikar, Chodankar, Naik, Bhat, Tari, Gaude are few examples. The Catholics display a strong Portuguese influence, because of the 451 years as a

Portuguese colony. Portuguese names are common among the Christians. The Caste system is either not followed by Goan Catholics or followed to a lesser degree as compared to other Indians. [9] Very few Catholic families also share Indo-Portuguese ancestry. The native Muslims are small in number and are popularly known as Moir (Konkani: )

Religion in Goa
Religion

[10]

Percent

Hinduism Christianity Islam Others

65.7% 26.6% 6.8% 2%

Distribution of religions Includes Sikhs (0.01%), Buddhists (0.01%), Jains (0.01%) and Others (0.01%).

Goans have been migrating all along the coast and across the world for the last six centuries because of many socio-religious and economic reasons, the diaspora are commonly known as the Konkani people, residing in the states of Karnataka, Maharashtra and Kerala who do not refer to themselves as Goans. Many Goans have settled in Mumbai (Bombay) in the last century and still identify themselves as Goans. India's Goan population is mainly concentrated in the mega cities like Bangalore, Kolkata, Delhi, Chennai and Pune. Until the early 1970s there were substantial populations of in the Middle East, Africa and Europe. Goans in Kenya, Uganda, Tanzania, Mozambique and Angola. The end of colonial rule and the subsequent waves of explusion of Indians from Kenya and Uganda forced the community to migrate elsewhere. The Gulf News put the number of Goans residing outside India as approximately 300,000.

Goa Population 2011 as per Census Growth rate, Literacy rate, sex ratio
As per census 2011, Goa population is over 14 lakh (14,57,723). The population index recorded an increase of 8.17 percent from 2001. Among the total population of Goa, the state comprises 7,40, 711 males and 7,17,012 females. Sex ratio of Goa stands at 968, which was 961 in 2001. Sex ratio for child population in the age group of six is 920, which was 938 in 2001, whereas sex ratio for population aged seven and above is 973, which was 964 in 2001. The census indicates that the per square kilometer density is 394 in Goa. The literate population in Goa is 11,52,117 which is 87.40 percent. The literacy rate is higher than the national average. As per the village wise and town wise population in Goa, Codvol village in Sattari Taluka has just 5 persons. The most populated village in Goa is Shiroda in Ponda with a population of 14,030 persons. The most populous town in Goa is Margao with a population of 87,678 persons 44,528 males and 43,148 females. The least populous town in the state is Pernem with a population of 5,025 persons 2,573 males and 2,452 females.
Density of Population
In 1990, the State of Goa covered a geographical area of 3,702 sq. km. and had, as its administrative structure, the following configuration: No. of Districts : 2 Talukas : 11 Towns :15 Villages: 398 Uninhabited revenue villages: 9 Municipal Councils : 184 Blocks: 1 With a State population in 1991 at a figure of 1,168,622 and a geographic area of 3,702 sq.km., Goa had a density of 316 persons per sq.km.in 1991 compared to a figurre of 272 for the year of 1981.In terms of ranking on an allIndia basis,Goa's density ratio for 1991 occupies the 13th rank; and this ratio for Goa is above the allIndia density ratio for 1991 which is at a level of 267. In this context, a density ratio of 316 per sq.km. is considerably lower than the densities of some of the metropolitan districts of Calcutta, Madras, Greater Bombay, Hyderabad, Delhi, Chandigarh, Mahe, Haora, Kanpur Nagar and Bangaiore,where the average density for these districts is as high as 5,791. Also, Goa's density ratio for 1991 (viz. 316per sq.km.) makes an inter esting comparison when viewed in the light of the following data relating to India's Density of Population for

the Census Years from 1901 to 1991:

Census Year 1901 1911 1921 1931 1941 1951 1961 1971 19SI 1991 All India (Density) Con's (Density)

77 82 81
90 103 117 142 177 216 267

316

Sex Ratio By definition, sex ratio is the number of females per 1000 males in a State's population. Several factors affect sex ratios and these could include differentials in mortality conditions of males and females, sex selective migration and sex ratio at birth. Viewed on a national a basis, India's sex ratio has been showing a declining trend from the 1991 Census: this trend from the Census year 1901 down to the provisional data published through the 1991 census: this trend is clearly discernable from the following table: Census Year Sex Ratio 1901 972 1911 964 1921 955 1931 950 1941 945 1951 946 1961 941 1971 930 1981 934 1991 929 This trend has been the subject of several studies and their findings tend to suggest possible reasons for this situation. Some of them, as mentioned in the Provisional report of the 1991 Census, are: A preference for male children resulting in neglect of female babies The relative gap in health conditions between males and females and "certain types of mortality which are sex selective" and lower expectancy of life at birth for females in the past compared to the males, part of which is due to high maternal mortality

Insofar as Goa is concerned, this State's sex ratio for the years 1988-89, 198990 was 975 a figure well over the national sex ratio for 1991 (which, as mentioned earlier, was 929 as determined by the 1991 Census). In fact, a sex ratio of 950 and above is generally considered favorable to females in the Indian situation: Goa, obviously, with a sex ratio of 975, occupies an important place among the Indian States and Union Territories since it has a sex ratio above the figure of 950 and, decidedly, in excess of 929 the National Sex Ratio for 1991. The other States and Union Territories that have a sex ratio exceeding 950 (according to the 1991 Census) are: Kerala, Himachal Pradesh, Andhra Pradesh, Karnataka, Manipur, Orissa, Tamilnadu, Dadra and Nagar Haveli, Daman and Diu and Pondicherry. Urban Rural Composition Of Goa During the post-Liberation period saw Goa going through a period where several 'Gains of Freedom' brought a better life to the people of Goa. How ever, one needs to remember the tremendous strains that a small State like Goa with its rich culture history, natural and scenic beauty resulting in a unique heritage would face through rapid urbanization and population growth, especially during the 1970s and after. In looking at urbanization and industrial growth, one needs to bear in mind their impact on existing ancient structures having historical and cultural values, together with God-given natural beauty. And, an important development in the post-Liberation period is Goa's rapidly growing industrial and economic activities which, in their wake, have brought in growth through urbanization in what might otherwise be called a "Sleeping Beauty" of a State of the Indian Union. Data on decadal growth of urbanization and urban rise in population during 1971-81 has been a steep 58.82% and this rise has been mainly been in the costal talukas of tiswadi bardez, Salcete and Marmugoa leading to a deterioration in these talukas quality of life. According to an estimate by the Town and Country Planning Department of the Government of Goa about 45% of the population could form urban centers by the year 2001 A.D., with a growth pattern as shown in Table
1971 1981 1991 2001 25.6 % 32.0 % 38.0 % 45.0 %

On a Denver, train, a pair of men handcuffed together board. Suddenly, the fine and beautiful woman sitting in front of them raises her head and addresses the younger of them with a certain degree of annoyance. She was evidently very well acquainted with him.When that happens, an explanation had to be made, for the handcuffs linking his right hand to his partners left could not possibly pass unnoticed. The lady is horrified when she sees the handcuffs but he explains to her that he is the marshall and is transporting the prisoner to Leavenworth prison. Mr Easton, who is aquainted with Miss Fairchild explains that money was tight and he took a job transporting prisoners. The prisoner explains that all marshalls handcuff themselves to their prisoners to keep them from getting away after Miss Fairchild takes a nervous glance at the handcuffs. The woman finds it a bit hard to believe and shows herself astonished at such piece of information. Her sudden encounter with an old friend recalls in her mind, nostalgic memories from the past. Feelings of yearning and melancholy are also present on the tone of her speech. The marshals answers are, however, brief and laconic. There is a certain hint of disinterest on his words, which makes him look almost disdainful. Eventually, the prisoner makes a rather impolite remark, interrupting the conversation. In a surprisingly authoritarian manner, he utters his wish to have a drink and a cigarette. It is just a mere euphemism for expressing his desire to leave that place. bvAgainst all expectations, the marshal agrees and they both walk away leaving the woman alone. Their sudden departure is made without so much as a farewell, which causes an utterly awkward atmosphere on the place. Even the other passengers know that there is something wrong. One of the other passengers claims Pretty young to hold an office like that, isnt he?. Another passenger says whyOh! didnt you catch on? Saydid you ever know an officer to handcuff a prisoner to his right hand? This is O. Henrys way of telling the reader that Mr. Easton was actually the prisoner and the prisoner was actually the marshall transporting Mr. Easton to a new prison. The two men switched roles because Mr. Easton did not want Miss Fairchild to know that he was going to prison. As the story approaches its end, a huge revelation arises at the very last paragraph. Only two sentences suffice to make the whole narration acquire a

new and unexpected significance. Love, deceit and pride are then manifested to be the main themes in Hearts and Hands. Best seller Best seller deals with the life of a business worker of plate and glass company who believes that fictions are unrealistic and according to him a man always marries a girl of the same background. THE story starts with the narrator travelling in a chair car on his way to pittsburg where he meets john A. Pescud,an old acquaintance .john was reading a bestseller THE ROSE LADY and TREVELYAN JOHN thought that these stories were imaginary. then after a little formal chat on happenings in their lives john told that he was married. john was travelling to Cincinnati when he saw the finest maiden of all and fell in love then he followed her all the way to her home town keeping a sharp unpredictable distance from her eyes. he went in a hotel for the night to stay where the manager on asking said that the biggest mansion at top of the hill was of colonel allyn.then suddenly the maiden of his dreams came,he went to her and started the conversation,which ended with her revealing the truth that she knew John was following her and she was glad he didn't talked with her and the next challenge to him was to enter the girl's house which was none other than the colonel's mansion. the next morning he went there by showing his bussiness card and by pretending that he wanted to sell those plate glasses and hence wanted to meet colonel allyn ,the place was a dead coffin and he with shaken legs numb hands and crack voice talked to the colonel and after sometime came to the point and asked for the girl's hand and to his surprise the colonel gave an unexpected answer by agreeing and told him alot of stories about his experiences afterall he got smeone to listen to his stories and unwillingly he have to listen to him the story ends as train reaches to coketown and the so called travellyn goes to dig petunias for his rose lady and he addresses that the old man is still in my house waiting to tell more and more stories