Oligopolies affect what consumers can buy and how much they pay in a few ways:
Fewer Choices: When only a few big companies control a market, there aren’t many options for consumers. For example, in the smartphone market, big names like Apple and Samsung decide what products you can find.
Stable Prices: Prices in oligopolies usually stay the same. This happens because the companies depend on each other. If one company lowers its prices, the others often follow to stay competitive. This means prices don't change much.
Risk of Price Fixing: Companies in an oligopoly might work together to set higher prices. It's like how airlines sometimes agree on ticket prices. This can make things more expensive for consumers.
In summary, oligopolies create a special environment where companies have to balance between competing with each other and working together.
Oligopolies affect what consumers can buy and how much they pay in a few ways:
Fewer Choices: When only a few big companies control a market, there aren’t many options for consumers. For example, in the smartphone market, big names like Apple and Samsung decide what products you can find.
Stable Prices: Prices in oligopolies usually stay the same. This happens because the companies depend on each other. If one company lowers its prices, the others often follow to stay competitive. This means prices don't change much.
Risk of Price Fixing: Companies in an oligopoly might work together to set higher prices. It's like how airlines sometimes agree on ticket prices. This can make things more expensive for consumers.
In summary, oligopolies create a special environment where companies have to balance between competing with each other and working together.