宋利芳《经济学专业英语教程（精编版）（第二版）》Unit 4.pptVIP

Unit 4Text: Oligopoly（寡头垄断） 1. Key words2. Characteristics of oligopoly3. Price and output decisions for an oligopolist4. An Evaluation of Oligopoly5. Questions imperfectly competitive market structuremanufacturing industrystandardized productnonprice competitionkinked demand curveprice leadershipproduct differentiationR＆Dprice makerprice takerprice rigidityOPECcrude oilperfectly competitive firm1. Key words 2.1 Definition of oligopoly2.2 Characteristics of oligopoly2. Characteristics of oligopoly Oligopoly is an imperfectly competitive market structure in which a few large firms dominate the market. Many manufacturing industries, such as steel, aluminum, automobiles, aircraft, drugs, and tobacco, are best described as oligopolistic.An oligopoly is characterized by: Few sellers; Either a homogeneous or a differentiated product; Difficult market entry. Oligopoly is found in real-world industries.2.1 Definition of oligopoly 2.2.1 Few Sellers2.2.2 Homogeneous or Differentiated Product2.2.3 Difficult Entry2.2 Characteristics of oligopoly Oligopoly is competition “among the few.”Basically, an oligopoly is a consequence of mutual interdependence. Mutual interdependence is a condition in which an action by one firm may cause a reaction from other firms. Stated another way, a market structure with a few powerful firms makes it easier for oligopolists to collude.2.2.1 Few Sellers Under oligopoly, firms can produce either a homogeneous or a differentiated product.The oil sold by Saudi Arabia is identical to the oil from Iran. Similarly, zinc, copper, and aluminum are standardized products. But cars produced by the major automakers are differentiated products.2.2.2 Homogeneous or Differentiated Product Formidable barriers to entry in an oligopoly protect firms from new entrants. These barriers include exclusive financial requirements, control over an essential resource, patent rights, and other legal barriers. But the most significant barrier to entry in an oligopo