08s6f econ blog

This is an example of an ogliopoly.




*PLEASE FULL VIEW THE IMAGE* :)

(to refresh your memory, ogliopoly is the market situation when there are a few dominant sellers selling homogenous or differentiated products and the sellers are mutually interdependent)

Hence since there are only around 10 stalls in the canteen, it is quite a few numbers. All of them have roughly the same amount of output as the number of sellers is quite evenly spread out between the stalls. Their products (food) can be deemed as homogenous or differentiated. It is homogenous as all of them sell food. However, it is differentiated in the sense that there are Japanese, Indian, Malay, Western, Chinese food and also there are stalls seling snacks and drinks.

Furthermore, I realised that some of the stalls are also trying to diversify their products instead of narrowing themselves to just one kind of product ("market"). For example, Malay food stall started selling Indian food while Asian Fusion stall just started selling traditional chinese rice cake products on tueay (20 May 2008).

There can never be a monopoly happening in the Hwachong canteen as barriers to entry is very low as the capital needed to run a stall in there is not very high. Furthermore none of the stalls control a large proportion of the "market''. Also, there are a few stalls in the canteen so there is no sinlge seller and products sold are not unique. Since all 3 characterstics of a monopoly have not been fulfilled, the Hwachong canteen is therefore not a monopoly market structure.

Yay.

Fransisca :)