The behaviour of firms in an oligopoly - The Australian Automobile Industry

The Australian car industry is havely an example of an oligopoly. The liberal four, Holden, Toyota, Ford and Mitsubishi dominate the industry. Collectively they sell 62% of unsoured cars in Australia. These four hards all have a premix of topical anesthetic anestheticly produced and imported models, local intersection pointion is however fractious protected with the use of import tariffs, taxes, and quotas. Below is a set showing the securities industry sh ar that each manufacturer has. Oligopolies clear take many forms, they can range from being local to global. An example of a local oligopoly is a small reticuloendothelial system publica town with only two petrol stations. An oligopoly is essentially a market dominated by a couple of(prenominal) sellers. In a global sense these be industries uniform steel, cars, oil, and breakfast cereals. Because in that location are few firms, each firm must everywhereturn how their policies are going to effect their competitors behaviour. In more or less oligopoly industries at that place is a homogeneous product for example steel, oil, etc. In others, the product is differentiated crossways producers for example cars and electronic goods. Where the products are homogeneous, there is greater interdependence among the firms in the industry. In these markets, a small change in price will manoeuvre customers to and from the rivals.

In markets where the products are differentiated, producers are not quite as sensitive to each others actions. Oligopolies have emerged cod to a number of factors. This m arket structure can very much be traced to ! some form of barrier to launching like economies of scale, legal restrictions, shit name and brand loyalty or control over an essential resource. These barriers of entry can be thought of as similar but less stern than those of a monopoly. Economies of photographic plate This is perhaps the most significant barrier for entry into an oligopoly. If the negligible efficient scale in an industry is a jolly large size, then only a few firms are needed to produce the output demanded by the market. For the US automobile industry, it has been...If you want to get a full essay, company it on our website: OrderCustomPaper.com

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