Understanding The Market: Monopoly, Duopoly, and Oligopoly

[Mika]

In order to benefit from the market, you need to understand the market. When you understand the market, you can start investing or start your business to build your wealth. Markets are basically categorized into three types, monopoly, duopoly, and oligopoly.

Monopoly: Monopoly means online one individual or company controls the entire market. For example, until recently, more than 80 percent of the Diamond market worldwide was controlled by one company called De Beers. Microsoft is often blamed for creating a monopoly by buying new companies that Bill Gates thought would be a threat to Microsoft.

Duopoly: Duopoly means two companies control the entire market. For instance, the entire online advertising market is controlled by two companies Meta and Google. In a duopoly, two companies create a market condition where new companies cannot survive. Coca-Cola and Pepi, two companies control the entire soft drink market.

Oligopoly: Oligopoly means a handful of companies control the entire market. Apple, Samsung, Huawei, Xiaomi, and Oppo, these 5 companies control almost 70 percent of the smartphone market.

 

[btaliat]

This is a well written article. Short, articulated and rich in intent and content. The theme of the topic was clearly stated. And the reader would easily grasp the idea of the market structure.

Economists have tried to come out with advantages and disadvantages for the three. The mode of economy in countries do detemine the type of market to be prsctised it that country. There have been a time in Nigeria z s country in Africa, granted the richest man in Africa, Aliko Dangote, an opportunity to be the sole supplier of sugar. Many claimed that that's the origin of his wealth. Succinct to say that monopoly market is capable of making an individual rich at the expense of the masses.

Oligopoly is mostly and best prsctised in a capitalist market. This will not give room for the producer to get richer at the expense of the masses as the masses may determine to get their goods from other producer of the price of a producer is too high. The market will always look for better ways to outshine the other people in the competition.


The only advantage to it however is that it does care more about profit than customers satisfaction.