Oligopoly and the consumerWhen olig

Oligopoly and the consumer
When oligopolists act collusively and jointly maximise industry profits, they are in effect acting together as a monopoly. In such cases, prices may be very high. This is clearly not in the best interests of consumers.
Furthermore, in two respects, oligopoly may be more disadvantageous than monopoly:
 Depending in the size of the individual oligopolists, there may be less scope for economies of scale to mitigate the effects of market power.
 Oligopolists are likely to engage in much more extensive advertising than a monopolist.
These problems will be less severe, however, if oligopolists do not collude, if there is some degree of price competition and if barriers to entry are weak.
Also, the power of oligopolists in certain markets may to some extent be offset if they sell their product to other powerful firms. Thus oligopolistic producers oof baked beans or soap powder sell a large proportion of their output to giant supermarket chains which can use their market power to keep down the price at which they purchase these products. This phenomenon is known as countervailing power.
In some respects, oligopoly has advantages to society over other market structures:
 Oligopolists, like monopolists, can use part of their supernormal profit for research and development. Unlike monopolists, however, oligopolists will have a considerable incentive to do so. If the product design is improved, this may allow the firm to capture a larger share of the market, and it may be some time before rivals can respond with a similarly improved product. If, in addition, costs are reduced by technological improvement, the resulting higher profits will enable the firm to with satand better a price war should one break out.
 Non-price competition through product differentiation may result in greater choice for the consumer. Take the case of stereo equipment. Non-price competition has led to a huge range of different products of many different specifications, each meeting the specific requirements of different consumers.
It is difficult to draw any general conclusions, since oligopolies differ so much in their performance.

Hasil (Bahasa Indonesia) 1:

Oligopoli dan konsumenKetika preciously Oligopoli bertindak collusively dan bersama-sama memaksimalkan keuntungan industri, mereka berada dalam efek yang bertindak bersama-sama sebagai monopoli. Dalam kasus tersebut, mungkin harga sangat tinggi. Hal ini jelas tidak kepentingan konsumen. Selanjutnya, dalam dua hal, Oligopoli mungkin lebih menguntungkan daripada monopoli: Tergantung ukuran preciously Oligopoli individu, mungkin ada kurang ruang lingkup untuk skala untuk mengurangi efek dari kekuatan pasar ekonomi. preciously Oligopoli cenderung terlibat dalam iklan yang jauh lebih luas daripada sebuah monopoli.Masalah ini akan kurang parah, namun, jika preciously Oligopoli tidak berkolusi, jika ada beberapa tingkat persaingan harga dan jika hambatan masuk lemah.Juga, kekuatan preciously Oligopoli di pasar tertentu sampai batas tertentu dapat diimbangi jika mereka menjual produk mereka untuk perusahaan-perusahaan lain yang kuat. Dengan demikian oligopolistic produsen oof dipanggang kacang atau sabun bubuk menjual sebagian besar dari mereka output untuk rantai supermarket raksasa yang dapat menggunakan kekuatan pasar mereka agar turun harga di mana mereka membeli produk ini. Fenomena ini dikenal sebagai tandingan kekuasaan.Dalam beberapa hal, Oligopoli memiliki keuntungan kepada masyarakat atas struktur pasar lainnya: Oligopolists, like monopolists, can use part of their supernormal profit for research and development. Unlike monopolists, however, oligopolists will have a considerable incentive to do so. If the product design is improved, this may allow the firm to capture a larger share of the market, and it may be some time before rivals can respond with a similarly improved product. If, in addition, costs are reduced by technological improvement, the resulting higher profits will enable the firm to with satand better a price war should one break out. Non-price competition through product differentiation may result in greater choice for the consumer. Take the case of stereo equipment. Non-price competition has led to a huge range of different products of many different specifications, each meeting the specific requirements of different consumers.It is difficult to draw any general conclusions, since oligopolies differ so much in their performance.