{\rtf \ansi \ansicpg1252 \deff0 \stshfdbch2 \stshfloch0 \stshfhich0 \deflang1033

\deflangfe1033 {\fonttbl {\f0 \froman \fcharset0 \fprq2 {\*\panose 020206030504

05020304}Times New Roman{\*\falt Times New Roman};}{\f2 \fnil \fcharset134 \fprq
0 {\*\panose 02010600030101010101}SimSun{\*\falt SimSun};}{\f3 \fnil \fcharset2
\fprq0 {\*\panose 05000000000000000000}Wingdings{\*\falt Wingdings};}{\f4 \fswis
s \fcharset0 \fprq0 {\*\panose 020b0604020202020204}Arial{\*\falt Arial};}}{\*\c
olortbl ;\red0 \green0 \blue0 ;\red128 \green0 \blue0 ;\red255 \green0 \blue0 ;\
red0 \green128 \blue0 ;\red128 \green128 \blue0 ;\red0 \green255 \blue0 ;\red255
\green255 \blue0 ;\red0 \green0 \blue128 ;\red128 \green0 \blue128 ;\red0 \gree
n128 \blue128 ;\red128 \green128 \blue128 ;\red192 \green192 \blue192 ;\red0 \gr
een0 \blue255 ;\red255 \green0 \blue255 ;\red0 \green255 \blue255 ;\red255 \gree
n255 \blue255 ;}{\stylesheet {\qj \li0 \ri0 \widctlpar \aspalpha \aspnum \adjust
right \lin0 \rin0 \itap0 \fs21 \kerning2 \dbch \af2 \hich \af0 \loch \f0 \snext0
\sunhideused \spriority0 Normal;}}{\*\latentstyles \lsdstimax156 \lsdlockeddef0
\lsdsemihiddendef1 \lsdunhideuseddef1 \lsdqformatdef0 \lsdprioritydef99 {\lsdlo
ckedexcept \lsdsemihidden0 \lsdpriority0 \lsdlocked0 Normal;\lsdsemihidden0 \lsd
unhideused0 \lsdqformat1 \lsdpriority99 \lsdlocked0 heading 1;\lsdsemihidden0 \l
sdunhideused0 \lsdqformat1 \lsdpriority99 \lsdlocked0 heading 2;\lsdsemihidden0
\lsdunhideused0 \lsdqformat1 \lsdpriority99 \lsdlocked0 heading 3;\lsdsemihidden
0 \lsdunhideused0 \lsdqformat1 \lsdpriority99 \lsdlocked0 heading 4;\lsdsemihidd
en0 \lsdunhideused0 \lsdqformat1 \lsdpriority99 \lsdlocked0 heading 5;\lsdsemihi
dden0 \lsdunhideused0 \lsdqformat1 \lsdpriority99 \lsdlocked0 heading 6;\lsdsemi
hidden0 \lsdunhideused0 \lsdqformat1 \lsdpriority99 \lsdlocked0 heading 7;\lsdse
mihidden0 \lsdunhideused0 \lsdqformat1 \lsdpriority99 \lsdlocked0 heading 8;\lsd
semihidden0 \lsdunhideused0 \lsdqformat1 \lsdpriority99 \lsdlocked0 heading 9;\l
sdsemihidden0 \lsdunhideused0 \lsdqformat1 \lsdpriority99 \lsdlocked0 index 1;\l
sdsemihidden0 \lsdunhideused0 \lsdqformat1 \lsdpriority99 \lsdlocked0 index 2;\l
sdsemihidden0 \lsdunhideused0 \lsdqformat1 \lsdpriority99 \lsdlocked0 index 3;\l
sdsemihidden0 \lsdunhideused0 \lsdqformat1 \lsdpriority99 \lsdlocked0 index 4;\l
sdsemihidden0 \lsdunhideused0 \lsdqformat1 \lsdpriority99 \lsdlocked0 index 5;\l
sdsemihidden0 \lsdunhideused0 \lsdqformat1 \lsdpriority99 \lsdlocked0 index 6;\l
sdsemihidden0 \lsdunhideused0 \lsdqformat1 \lsdpriority99 \lsdlocked0 index 7;\l
sdsemihidden0 \lsdunhideused0 \lsdqformat1 \lsdpriority99 \lsdlocked0 index 8;\l
sdsemihidden0 \lsdunhideused0 \lsdqformat1 \lsdpriority99 \lsdlocked0 index 9;\l
sdsemihidden0 \lsdunhideused0 \lsdqformat1 \lsdpriority99 \lsdlocked0 toc 1;\lsd
semihidden0 \lsdunhideused0 \lsdqformat1 \lsdpriority99 \lsdlocked0 toc 2;\lsdse
mihidden0 \lsdunhideused0 \lsdqformat1 \lsdpriority99 \lsdlocked0 toc 3;\lsdsemi
hidden0 \lsdunhideused0 \lsdqformat1 \lsdpriority99 \lsdlocked0 toc 4;\lsdsemihi
dden0 \lsdunhideused0 \lsdqformat1 \lsdpriority99 \lsdlocked0 toc 5;\lsdsemihidd
en0 \lsdunhideused0 \lsdqformat1 \lsdpriority99 \lsdlocked0 toc 6;\lsdsemihidden
0 \lsdunhideused0 \lsdqformat1 \lsdpriority99 \lsdlocked0 toc 7;\lsdsemihidden0
\lsdunhideused0 \lsdqformat1 \lsdpriority99 \lsdlocked0 toc 8;\lsdsemihidden0 \l
sdunhideused0 \lsdqformat1 \lsdpriority99 \lsdlocked0 toc 9;\lsdsemihidden0 \lsd
unhideused0 \lsdqformat1 \lsdpriority99 \lsdlocked0 Normal Indent;\lsdsemihidden
0 \lsdunhideused0 \lsdqformat1 \lsdpriority99 \lsdlocked0 footnote text;\lsdsemi
hidden0 \lsdunhideused0 \lsdqformat1 \lsdpriority99 \lsdlocked0 annotation text;
\lsdsemihidden0 \lsdunhideused0 \lsdqformat1 \lsdpriority99 \lsdlocked0 header;\
lsdsemihidden0 \lsdunhideused0 \lsdqformat1 \lsdpriority99 \lsdlocked0 footer;\l
sdsemihidden0 \lsdunhideused0 \lsdqformat1 \lsdpriority99 \lsdlocked0 index head
ing;\lsdsemihidden0 \lsdunhideused0 \lsdqformat1 \lsdpriority99 \lsdlocked0 capt
ion;\lsdsemihidden0 \lsdunhideused0 \lsdqformat1 \lsdpriority99 \lsdlocked0 tabl
e of figures;\lsdsemihidden0 \lsdunhideused0 \lsdqformat1 \lsdpriority99 \lsdloc
ked0 envelope address;\lsdsemihidden0 \lsdunhideused0 \lsdqformat1 \lsdpriority9
9 \lsdlocked0 envelope return;\lsdsemihidden0 \lsdunhideused0 \lsdqformat1 \lsdp
riority99 \lsdlocked0 footnote reference;\lsdsemihidden0 \lsdunhideused0 \lsdqfo
rmat1 \lsdpriority99 \lsdlocked0 annotation reference;\lsdsemihidden0 \lsdunhide
used0 \lsdqformat1 \lsdpriority99 \lsdlocked0 line number;\lsdsemihidden0 \lsdun
hideused0 \lsdqformat1 \lsdpriority99 \lsdlocked0 page number;\lsdsemihidden0 \l
sdunhideused0 \lsdqformat1 \lsdpriority99 \lsdlocked0 endnote reference;\lsdsemi
hidden0 \lsdunhideused0 \lsdqformat1 \lsdpriority99 \lsdlocked0 endnote text;\ls

dsemihidden0 \lsdunhideused0 \lsdqformat1 \lsdpriority99 \lsdlocked0 table of au

thorities;\lsdsemihidden0 \lsdunhideused0 \lsdqformat1 \lsdpriority99 \lsdlocked
0 macro;\lsdsemihidden0 \lsdunhideused0 \lsdqformat1 \lsdpriority99 \lsdlocked0
toa heading;\lsdsemihidden0 \lsdunhideused0 \lsdqformat1 \lsdpriority99 \lsdlock
ed0 List;\lsdsemihidden0 \lsdunhideused0 \lsdqformat1 \lsdpriority99 \lsdlocked0
List Bullet;\lsdsemihidden0 \lsdunhideused0 \lsdqformat1 \lsdpriority99 \lsdloc
ked0 List Number;\lsdsemihidden0 \lsdunhideused0 \lsdqformat1 \lsdpriority99 \ls
dlocked0 List 2;\lsdsemihidden0 \lsdunhideused0 \lsdqformat1 \lsdpriority99 \lsd
locked0 List 3;\lsdsemihidden0 \lsdunhideused0 \lsdqformat1 \lsdpriority99 \lsdl
ocked0 List 4;\lsdsemihidden0 \lsdunhideused0 \lsdqformat1 \lsdpriority99 \lsdlo
cked0 List 5;\lsdsemihidden0 \lsdunhideused0 \lsdqformat1 \lsdpriority99 \lsdloc
ked0 List Bullet 2;\lsdsemihidden0 \lsdunhideused0 \lsdqformat1 \lsdpriority99 \
lsdlocked0 List Bullet 3;\lsdsemihidden0 \lsdunhideused0 \lsdqformat1 \lsdpriori
ty99 \lsdlocked0 List Bullet 4;\lsdsemihidden0 \lsdunhideused0 \lsdqformat1 \lsd
priority99 \lsdlocked0 List Bullet 5;\lsdsemihidden0 \lsdunhideused0 \lsdqformat
1 \lsdpriority99 \lsdlocked0 List Number 2;\lsdsemihidden0 \lsdunhideused0 \lsdq
format1 \lsdpriority99 \lsdlocked0 List Number 3;\lsdsemihidden0 \lsdunhideused0
\lsdqformat1 \lsdpriority99 \lsdlocked0 List Number 4;\lsdsemihidden0 \lsdunhid
eused0 \lsdqformat1 \lsdpriority99 \lsdlocked0 List Number 5;\lsdsemihidden0 \ls
dunhideused0 \lsdqformat1 \lsdpriority99 \lsdlocked0 Title;\lsdsemihidden0 \lsdu
nhideused0 \lsdqformat1 \lsdpriority99 \lsdlocked0 Closing;\lsdsemihidden0 \lsdu
nhideused0 \lsdqformat1 \lsdpriority99 \lsdlocked0 Signature;\lsdsemihidden0 \ls
dunhideused0 \lsdqformat1 \lsdpriority99 \lsdlocked0 Default Paragraph Font;\lsd
semihidden0 \lsdunhideused0 \lsdqformat1 \lsdpriority99 \lsdlocked0 Body Text;\l
sdsemihidden0 \lsdunhideused0 \lsdqformat1 \lsdpriority99 \lsdlocked0 Body Text
Indent;\lsdsemihidden0 \lsdunhideused0 \lsdqformat1 \lsdpriority99 \lsdlocked0 L
ist Continue;\lsdsemihidden0 \lsdunhideused0 \lsdqformat1 \lsdpriority99 \lsdloc
ked0 List Continue 2;\lsdsemihidden0 \lsdunhideused0 \lsdqformat1 \lsdpriority99
\lsdlocked0 List Continue 3;\lsdsemihidden0 \lsdunhideused0 \lsdqformat1 \lsdpr
iority99 \lsdlocked0 List Continue 4;\lsdsemihidden0 \lsdunhideused0 \lsdqformat
1 \lsdpriority99 \lsdlocked0 List Continue 5;\lsdsemihidden0 \lsdunhideused0 \ls
dqformat1 \lsdpriority99 \lsdlocked0 Message Header;\lsdsemihidden0 \lsdunhideus
ed0 \lsdqformat1 \lsdpriority99 \lsdlocked0 Subtitle;\lsdsemihidden0 \lsdunhideu
sed0 \lsdqformat1 \lsdpriority99 \lsdlocked0 Salutation;\lsdsemihidden0 \lsdunhi
deused0 \lsdqformat1 \lsdpriority99 \lsdlocked0 Date;\lsdsemihidden0 \lsdunhideu
sed0 \lsdqformat1 \lsdpriority99 \lsdlocked0 Body Text First Indent;\lsdsemihidd
en0 \lsdunhideused0 \lsdqformat1 \lsdpriority99 \lsdlocked0 Body Text First Inde
nt 2;\lsdsemihidden0 \lsdunhideused0 \lsdqformat1 \lsdpriority99 \lsdlocked0 Not
e Heading;\lsdsemihidden0 \lsdunhideused0 \lsdqformat1 \lsdpriority99 \lsdlocked
0 Body Text 2;\lsdsemihidden0 \lsdunhideused0 \lsdqformat1 \lsdpriority99 \lsdlo
cked0 Body Text 3;\lsdsemihidden0 \lsdunhideused0 \lsdqformat1 \lsdpriority99 \l
sdlocked0 Body Text Indent 2;\lsdsemihidden0 \lsdunhideused0 \lsdqformat1 \lsdpr
iority99 \lsdlocked0 Body Text Indent 3;\lsdsemihidden0 \lsdunhideused0 \lsdqfor
mat1 \lsdpriority99 \lsdlocked0 Block Text;\lsdsemihidden0 \lsdunhideused0 \lsdq
format1 \lsdpriority99 \lsdlocked0 Hyperlink;\lsdsemihidden0 \lsdunhideused0 \ls
dqformat1 \lsdpriority99 \lsdlocked0 FollowedHyperlink;\lsdsemihidden0 \lsdunhid
eused0 \lsdqformat1 \lsdpriority99 \lsdlocked0 Strong;\lsdsemihidden0 \lsdunhide
used0 \lsdqformat1 \lsdpriority99 \lsdlocked0 Emphasis;\lsdsemihidden0 \lsdunhid
eused0 \lsdqformat1 \lsdpriority99 \lsdlocked0 Document Map;\lsdsemihidden0 \lsd
unhideused0 \lsdqformat1 \lsdpriority99 \lsdlocked0 Plain Text;\lsdsemihidden0 \
lsdunhideused0 \lsdqformat1 \lsdpriority99 \lsdlocked0 E-mail Signature;\lsdsemi
hidden0 \lsdunhideused0 \lsdqformat1 \lsdpriority99 \lsdlocked0 Normal (Web);\ls
dsemihidden0 \lsdunhideused0 \lsdqformat1 \lsdpriority99 \lsdlocked0 HTML Acrony
m;\lsdsemihidden0 \lsdunhideused0 \lsdqformat1 \lsdpriority99 \lsdlocked0 HTML A
ddress;\lsdsemihidden0 \lsdunhideused0 \lsdqformat1 \lsdpriority99 \lsdlocked0 H
TML Cite;\lsdsemihidden0 \lsdunhideused0 \lsdqformat1 \lsdpriority99 \lsdlocked0
HTML Code;\lsdsemihidden0 \lsdunhideused0 \lsdqformat1 \lsdpriority99 \lsdlocke
d0 HTML Definition;\lsdsemihidden0 \lsdunhideused0 \lsdqformat1 \lsdpriority99 \
lsdlocked0 HTML Keyboard;\lsdsemihidden0 \lsdunhideused0 \lsdqformat1 \lsdpriori
ty99 \lsdlocked0 HTML Preformatted;\lsdsemihidden0 \lsdunhideused0 \lsdqformat1

\lsdpriority99 \lsdlocked0 HTML Sample;\lsdsemihidden0 \lsdunhideused0 \lsdqform

at1 \lsdpriority99 \lsdlocked0 HTML Typewriter;\lsdsemihidden0 \lsdunhideused0 \
lsdqformat1 \lsdpriority99 \lsdlocked0 HTML Variable;\lsdpriority99 \lsdlocked0
Normal Table;\lsdsemihidden0 \lsdunhideused0 \lsdqformat1 \lsdpriority99 \lsdloc
ked0 annotation subject;\lsdpriority99 \lsdlocked0 No List;\lsdsemihidden0 \lsdu
nhideused0 \lsdqformat1 \lsdpriority99 \lsdlocked0 Balloon Text;}}{\*\generator
WPS Office}{\info {\title An industry is a group of firms that offer a product o
r class of products that are close substitutes for one another. Industrie}{\oper
ator User}{\creatim \yr2014 \mo9 \dy16 \hr14 \min42 }{\revtim \yr2014 \mo9 \dy16
\hr14 \min59 }{\version1 }}\paperw12240 \paperh15840 \margl1800 \margr1800 \mar
gt1440 \margb1440 \gutter0 \ftnbj \aenddoc \dghspace0 \jcompress1 \viewkind1 \vi
ewscale100 \ftnlytwnine \useltbaln \alntblind \lytcalctblwd \rtlgutter {\*\fchar
s {\uc1 \u33 ?}{\uc1 \u41 ?}{\uc1 \u44 ?}{\uc1 \u46 ?}{\uc1 \u58 ?}{\uc1 \u59 ?}
{\uc1 \u63 ?}{\uc1 \u93 ?}{\uc1 \u125 ?}{\uc1 \u168 ?}{\uc1 \u183 ?}{\uc1 \u711
?}{\uc1 \u713 ?}{\uc1 \u8213 ?}{\uc1 \u8214 ?}{\uc1 \u8217 ?}{\uc1 \u8221 ?}{\uc
1 \u8230 ?}{\uc1 \u8758 ?}{\uc1 \u12289 ?}{\uc1 \u12290 ?}{\uc1 \u12291 ?}{\uc1
\u12293 ?}{\uc1 \u12297 ?}{\uc1 \u12299 ?}{\uc1 \u12301 ?}{\uc1 \u12303 ?}{\uc1
\u12305 ?}{\uc1 \u12309 ?}{\uc1 \u12311 ?}{\uc1 \u65281 ?}{\uc1 \u65282 ?}{\uc1
\u65287 ?}{\uc1 \u65289 ?}{\uc1 \u65292 ?}{\uc1 \u65294 ?}{\uc1 \u65306 ?}{\uc1
\u65307 ?}{\uc1 \u65311 ?}{\uc1 \u65341 ?}{\uc1 \u65344 ?}{\uc1 \u65372 ?}{\uc1
\u65373 ?}{\uc1 \u65374 ?}{\uc1 \u65504 ?}}{\*\lchars {\uc1 \u40 ?}{\uc1 \u91 ?}
{\uc1 \u123 ?}{\uc1 \u183 ?}{\uc1 \u8216 ?}{\uc1 \u8220 ?}{\uc1 \u12296 ?}{\uc1
\u12298 ?}{\uc1 \u12300 ?}{\uc1 \u12302 ?}{\uc1 \u12304 ?}{\uc1 \u12308 ?}{\uc1
\u12310 ?}{\uc1 \u65288 ?}{\uc1 \u65294 ?}{\uc1 \u65339 ?}{\uc1 \u65371 ?}{\uc1
\u65505 ?}{\uc1 \u65509 ?}}\fet2 {\*\ftnsep \pard \plain {\insrsid \chftnsep \pa
r }}{\*\ftnsepc \pard \plain {\insrsid \chftnsepc \par }}{\*\aftnsep \pard \plai
n {\insrsid \chftnsep \par }}{\*\aftnsepc \pard \plain {\insrsid \chftnsepc \par
}}\sectd \sbkpage \pgwsxn12240 \pghsxn15840 \marglsxn1800 \margrsxn1800 \margts
xn1440 \margbsxn1440 \guttersxn0 \headery720 \footery720 \pgbrdropt0 \endnhere \
pard \plain \qj \fi720 \li0 \ri0 \sl360 \slmult1 \nowidctlpar \adjustright \lin0
\rin0 \itap0 \fs21 \kerning2 \dbch \af2 \hich \af0 \loch \af0 {\fs22 \kerning2
\dbch \af2 \hich \af4 \loch \f4 \lang1033 \langnp1033 An industry is a group of
firms that offer a product or class of products that are close substitutes for o
ne another. Industries are classified according to number of sellers, degree of
product differentiation, presence or absence of entry, mobility and exit barrier
s, cost structure, degree of vertical integration and degree of globalization.}{
\fs22 \kerning2 \dbch \af2 \hich \af4 \loch \f4 \lang1033 \langnp1033 \par }\par
d \plain \qj \fi720 \li0 \ri0 \sl360 \slmult1 \nowidctlpar \adjustright \lin0 \r
in0 \itap0 \fs21 \kerning2 \dbch \af2 \hich \af0 \loch \af0 {\fs22 \kerning2 \db
ch \af2 \hich \af4 \loch \f4 \lang1033 \langnp1033 Basically the starting point
for describing an industry is to specify the number of sellers and whether the p
roduct is homogeneous or highly differentiated which give rise to different indu
stry structure types or we can also classify it as the industry concept of compe
tition.}{\fs22 \kerning2 \dbch \af2 \hich \af4 \loch \f4 \lang1033 \langnp1033 \
par }\pard \plain \qj \fi720 \li0 \ri0 \sl360 \slmult1 \nowidctlpar \adjustright
\lin0 \rin0 \itap0 \fs21 \kerning2 \dbch \af2 \hich \af0 \loch \af0 {\fs22 \ker
ning2 \dbch \af2 \hich \af4 \loch \f4 \lang1033 \langnp1033 The first concept of
competiton would be \uc1 \u8216 ?\uc1 \u8217 ?Pure monopoly\uc1 \u8217 ?\uc1 \u
8217 ? where \uc1 \u8216 ?\uc1 \u8217 ?Mono means one and poly means seller\uc1
\u8217 ?\uc1 \u8217 ? and basicallyknown as a market in which one company has co
ntrol over the entire market for a product, usually because a barrier to entry s
uch as technology only available to that company .A monopolistic market therefor
e is one in which only a single seller produces the output for the entire market
. A monopoly is exclusive control of the market by one business because there is
no other group selling the product or offering the service. A true monopoly rar
ely exists because there is no competition, business will increase the price whi
le reducing output to increase profits. Example of pure monopolies are rare but
they still do exist which includes utility companies, such as water and electric
ity in some towns, cell service providers in some countries, professional sport
teams and Microsoft which is known as near monopolist in PC operating system.The

re have been many monopolies in various market throughout history, but often suc
h firms get broken up into smaller firms, sometimes due to the goverment interve
ntion aimed at increasing competiton to lower prices for consumers. That brings
us to some of the characteristics of monopolistic markets. Besides there being j
ust one seller, such firms are also price-makers, they face a downward slopping
demand curve (compared to PC firm\uc1 \u8217 ?s perfectly electrical demand), an
d there are high barriers to entry enabling monopolist to earn economic profits
in the long run. In addition, the marginal revenue a film receives for additiona
l units of output is always lower than the price it is selling the output for. T
he last characteristic may sound mundane, but in fact it is the reason monopolis
t will always charge higher prices and produce at lower quantities than perfectl
y competetive markets.}{\fs22 \kerning2 \dbch \af2 \hich \af4 \loch \f4 \lang103
3 \langnp1033 \par }\pard \plain \qj \fi720 \li0 \ri0 \sl360 \slmult1 \nowidctlp
ar \adjustright \lin0 \rin0 \itap0 \fs21 \kerning2 \dbch \af2 \hich \af0 \loch \
af0 {\fs22 \kerning2 \dbch \af2 \hich \af4 \loch \f4 \lang1033 \langnp1033 Oligo
poly is a common economic system in today\uc1 \u8217 ?s society. The word \uc1 \
u8216 ?\uc1 \u8217 ?oligopoly\uc1 \u8217 ?\uc1 \u8217 ? comes from the Greek \uc
1 \u8216 ?\uc1 \u8217 ?oligos\uc1 \u8217 ?\uc1 \u8217 ? meaning \uc1 \u8216 ?\uc
1 \u8217 ?little or small\uc1 \u8217 ?\uc1 \u8217 ? and \uc1 \u8216 ?\uc1 \u8217
?polein\uc1 \u8217 ?\uc1 \u8217 ? meaning to sell. When \uc1 \u8216 ?\uc1 \u821
7 ?oligos\uc1 \u8217 ?\uc1 \u8217 ? is used in the plural, it means \uc1 \u8216
?\uc1 \u8217 ?few\uc1 \u8217 ?\uc1 \u8217 ?. Business that are part of an oligop
oly share some common characteristics. One of them is they are less concentrated
than in a monopoly, but more concentrated than in a competetive system. For exa
mple there is still competition within an oligopoly, as in the case of airlines.
Airlines match competitor\uc1 \u8217 ?s 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. Next the business o
ffer an identical product or services. This creates a high amount of interdepend
ence which encourages competition in non price-related areas, like advertising a
nd packaging. The tobacco companies, soft drink companies, and airlines are exam
ples of an imperfect oligopoly. Industries which are examples of oligopolies inc
lude, steel industry, aluminium, film, television, cell phone, and gas. Other ex
amples also includes four music companies control 80% of the market - Universal
Music Group, Sony Music Entertainment, Warner Music Group and EMI Group and six
major book publishers such as Random House, Pearson, Hachette, HarperCollins, Si
mon & Schuster and Holtzbrinck. Four breakfast cereal manufacturers include Kell
ogg, General Mills, Post Quaker, Two major producers in the beer industry such a
s Anheuser-Busch and MillerCoors, }{\fs22 \kerning2 \dbch \af2 \hich \af4 \loch
\f4 \lang1033 \langnp1033 \par }\pard \plain \qj \fi720 \li0 \ri0 \sl360 \slmult
1 \nowidctlpar \adjustright \lin0 \rin0 \itap0 \fs21 \kerning2 \dbch \af2 \hich
\af0 \loch \af0 {\fs22 \kerning2 \dbch \af2 \hich \af4 \loch \f4 \lang1033 \lang
np1033 As described above we know what is oligopoly and now we would discuss the
next concept which is Pure Oligopoly and Differentiated Oligopoly. Pure oligopo
ly refers to a market where all the firms are producing homogenous product such
as industries producing cement, steel, petrol, cooking gas, chemicals, aluminium
and sugar. There is no any kind of differences at least very minute one. Here a
ll products are perfect oligopoly. For instance some vegetables and fruits items
are supplying by few firms, where there is no any chances for differentiated pr
oducts. An oligopoly market said to be a differentiated oligopoly when the produ
cts produced by firms having some kind of differences. But at the same time the
products are substitutable one, since there is no any perfect uniformity in prod
ucts, it can also called as imperfect oligopoly. For example, we are using lapto
ps made by different companies. Actually are substitutable but a small kind of v
ariation can be seen in size, colour, and quality etc, so in differentiated Olig
opoly market, each firms are producing substitutable goods with product differen
tiation. Other example in differentiated oligopoly includes automobiles, televis
yen sets, soft drinks, cigarettes and many more.}{\fs22 \kerning2 \dbch \af2 \hi
ch \af4 \loch \f4 \lang1033 \langnp1033 \par }\pard \plain \qj \fi720 \li0 \ri0
\sl360 \slmult1 \nowidctlpar \adjustright \lin0 \rin0 \itap0 \fs21 \kerning2 \db

ch \af2 \hich \af0 \loch \af0 {\fs22 \kerning2 \dbch \af2 \hich \af4 \loch \f4 \
lang1033 \langnp1033 Next industry concept of competition that we will go throug
h is the Monopolistic competition. This is a form of imperfect competition where
many competing producers sell products that are differentiated from one another
(that is, the products are substitute, but, with differences such as branding,
are not exactly alike). In monopolistic competition firm can behave like monopol
ies in the short-run, including using market power to generate profit. In the lo
ng run, other firms enter the market and the benefits of differentiation decreas
e with competition, the market becomes more like perfect competition where firms
cannot gain economic profit. However, in reality, if consumers rationality/inno
vativeness is low and heuristics is preferred, monopolistic competition can fall
into natural monopoly, at the complete absence of goverment intervention. At th
e presence of coercive goverment, monopolistic competition will fall into goverm
ent-granted monopoly. Unlike perfect competition, the firm maintains spare capac
ity. Models of monopolistic competition are often used to model industries. Text
book examples of industries with market structures similar to monopolistic compe
tition include restaurants, cereal, clothing, shoes, and service industries in l
arge cities. Monopolistically competitive markets have the character where there
are many producers and many consumers in a given market, and no business has to
tal control over the market price. Consumers perceive that there are non-price d
ifferences among the competitors products. There are few barriers to entry and e
xit. Producers have a degree of control over price.}{\fs22 \kerning2 \dbch \af2
\hich \af4 \loch \f4 \lang1033 \langnp1033 \par }\pard \plain \qj \fi720 \li0 \r
i0 \sl360 \slmult1 \nowidctlpar \adjustright \lin0 \rin0 \itap0 \fs21 \kerning2
\dbch \af2 \hich \af0 \loch \af0 {\fs22 \kerning2 \dbch \af2 \hich \af4 \loch \f
4 \lang1033 \langnp1033 The last concept that would be discussed is the pure com
petition or sometimes termed as perfect competition is known as an ideal market
scenario, where all competitors sell identical products, each having a small mar
ket share. The market price is not determined by the sellers, but purely rides o
n the merit of the product. Safe to say, then, that perfect competition exists m
ostly in theory, with the exception of a few isolated cases. Perfect competition
constitutes a market with infinite sellers and buyers. All sellers bring homoge
nous products to the market. Owing to the large number of sellers, the prices of
commodities remain more or less stable, and no single seller would be able to i
nfluence a price hike. In other words, sellers are compelled to adhere to market
rules.The competition exisitng between the sellers in the perfectly competetive
market is totally impersonal, wich is what makes it ideal. The supply of homoge
nous product ensures that the products are available for consumers whenever they
wish to make a purchase. Illegal pricing tactics and hoarding find no place in
a purely competitive market.Economist have every reason to beleive that perfect
competition is the best market structure to protect the interests of the common
consumers. Profit maximization remains the sole aim of the sellers in a perfectl
y competetive market. Due to the existence of manny sellers, the market share of
each seller automatically reduces in a perfectly competetive market, leaving th
em with ample freedom to enter and exit from the market whenever they wish. Exam
ple of perfect competition such as in agricultural markets are the closest repre
sentation of perfectly competetive markets. These are marketplaces which have a
large number of vendors selling fruit, vegetables, and poultry- namely identical
produce. The prices of goods are competetive, and no single seller can yield an
y influence over the pricing. Consumers are free to pick any seller, depending u
pon their choice. Other example includes free software which also functions alon
g similar lines as agricultural marketplaces. In this case, software developers
are free to enter and exist the market according to their will. Pricing is also
determined by market conditions, rather than the sellers. Last example that we c
an go through is the street food vendors. This are also considered to be a part
of a perfectly competetive market. Their products are homogenous in nature, and
they are priced accordingly. Consumers are free to make purchases at any vendor
they prefer, and entry/exit barriers for sellers are virtually non-existent.}{\f
s22 \kerning2 \dbch \af2 \hich \af4 \loch \f4 \lang1033 \langnp1033 \par }\pard
\plain \qj \fi720 \li0 \ri0 \sl360 \slmult1 \nowidctlpar \adjustright \lin0 \rin

0 \itap0 \fs21 \kerning2 \dbch \af2 \hich \af0 \loch \af0 {\fs22 \kerning2 \dbch
\af2 \hich \af4 \loch \f4 \lang1033 \langnp1033 \par }}