Oligopolies

Principles of Microeconomics

ECO204

YOUR NAME

December 21, 2010

Are Oligopolies always bad for society? I would disagree that oligopolies are always bad for society because with oligopolies there is really no price competition. Oligopolies are defined as "a form of industry structure characterized by a few dominates firms. Products may be homogenous or differentiated." (Case, Fair & Oster, pg. 283) In the chapter reading there were very good examples on how oligopolies effect society; while at times the prices may be slightly higher than the cost to produce the item all companies that are producing the item will be within the same price range.

One may ask how a company will make money if the entire product falls in the same price bracket. In oligopolies...