oligopoly

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Word: Oligopoly

Part of Speech: Noun (Economics)

Definition: An oligopoly is a type of market structure where a small number of companies or producers control a large part of the market for a particular product or service. Because there are only a few companies, each one can influence the prices of their products and affect what the others do.

Usage Instructions:

• When to Use: You can use the word "oligopoly" when discussing economics, business, or markets. It helps to describe situations where few companies dominate an industry.
• How to Use It in a Sentence:
  • "The smartphone market is an oligopoly, with only a few major companies competing for customers."

Example:

• In the car industry, there are only a few large manufacturers. This situation creates an oligopoly where these companies can set prices and influence each other’s strategies.

Advanced Usage:

• Economics Context: In economic discussions, you might encounter terms like "market share" and "pricing power" when talking about oligopolies. Economists study oligopolies to understand how they can lead to higher prices for consumers due to limited competition.

Word Variants:

• Oligopolistic (adjective): Describing a market condition or behavior that is characteristic of an oligopoly.
  • Example: "The oligopolistic nature of the airline industry means that a few airlines control most of the flights."

Different Meanings:

• The term "oligopoly" is mostly used in economics, so it doesn't have different meanings in other contexts. However, understanding it in relation to similar concepts like "monopoly" (where one company controls the market) and "perfect competition" (where many companies compete) can be helpful.

Synonyms:

• Duopoly (when only two companies dominate)
• Oligopolist (a company that is part of an oligopoly)

Idioms and Phrasal Verbs:

• There are no specific idioms or phrasal verbs that directly relate to "oligopoly," but you can use expressions like "corner the market" to describe a situation where a company tries to control a large portion of the market, similar to what happens in an oligopoly.

Summary:

An oligopoly is a market situation where a few producers have significant control over prices and competition.

Academic

Noun

1. (economics) a market in which control over the supply of a commodity is in the hands of a small number of producers and each one can influence prices and affect competitors