DEFINICION DE OLIGOPOLIO, DUOPOLIO Y MONOPOLIO

Summary

In this microeconomics class, the concepts of oligopoly, duopoly, and monopoly are explained. Oligopoly refers to a market structure dominated by a few firms, each influencing market prices and quantities. Examples in Colombia include mobile phone companies like Claro and Tigo. A duopoly, on the other hand, involves two major firms controlling the market, such as Caracol and RCN television. Finally, a monopoly exists when a single company controls the entire market without substitutes, as seen with Ecopetrol in Colombia. Each structure has unique characteristics and impacts on competition, pricing, and market entry.

Takeaways

• 😀 Oligopoly refers to a market structure where only a few competitors dominate, influencing factors like price and quantity.
• 😀 In an oligopoly, there may be product differentiation or identical products, but few firms control the market.
• 😀 Barriers to entry exist in oligopolies, making it difficult for new competitors to enter the market.
• 😀 Companies in an oligopoly can earn significant long-term profits due to limited competition.
• 😀 An example of an oligopoly in Colombia includes the major mobile phone companies like Claro, Movistar, and Tigo.
• 😀 Duopoly is a market structure where two companies control the entire market, often through price fixing and strategic behavior.
• 😀 Duopolies often feature identical products, and the two companies divide the market equally, paying close attention to each other's actions.
• 😀 Examples of duopolies in Colombia include major television networks, such as Caracol Televisión and RCN Televisión.
• 😀 A monopoly is a market structure where a single company dominates the market, offering a unique product or service with no close substitutes.
• 😀 In a monopoly, the monopolist controls both the supply and pricing of the product, with significant barriers preventing other companies from entering the market.
• 😀 An example of a monopoly in Colombia is Ecopetrol, which controls the petroleum sector and has substantial market power due to high infrastructure costs.

Q & A

What is an oligopoly?

An oligopoly is a market structure where only a few competitors dominate the market. Each of these competitors has the ability to influence market variables such as price and quantity.

What are the key characteristics of an oligopoly?

The key characteristics of an oligopoly include: 1) Few firms offering the product in the market, 2) The product may be differentiated or not, 3) There are barriers to entry, and 4) Firms can earn significant profits in the long term.

Can you give an example of an oligopoly in Colombia?

In Colombia, examples of oligopolies include mobile phone companies like Claro, Movistar, and Tigo, which offer similar services to the public, allowing consumers to choose the one that best fits their needs.

What is a duopoly?

A duopoly is a market structure where only two firms control the entire market, especially through price-fixing behaviors.

What are the main features of a duopoly?

The characteristics of a duopoly include: 1) Two producers, 2) The producers offer identical goods, 3) The producers split the market, and 4) Each firm must be aware of the other’s actions.

Can you provide an example of a duopoly in Colombia?

In Colombia, an example of a duopoly is found in the television industry, with Caracol Televisión and RCN Televisión being the two major companies dominating the market.

What is a monopoly?

A monopoly is a market structure in which there is only one provider of a good or service. This single company dominates the entire market, and there are no close substitutes for the product.

What are the characteristics of a monopoly?

The characteristics of a monopoly include: 1) Only one seller in the market, 2) The company is the entire industry, 3) The goods have no close substitutes, 4) There are significant barriers to entry, and 5) The monopolist has the power to set prices and control the quantity sold.

Can you give an example of a monopoly in Colombia?

In Colombia, Ecopetrol is an example of a monopoly, as it is the only company that can supply oil products, and its dominance is ensured by the large infrastructure investments and risks involved in the sector.

What makes Ecopetrol a monopoly in Colombia?

Ecopetrol is a monopoly because it controls the oil industry in Colombia, and no other competitor is willing to invest the large sums of money required to replicate its infrastructure. The company’s position is further strengthened by the long-term nature of the investments and risks involved.