Microeconomics Essay
Microeconomics Essay
The supermarket industry in the UK could be described as an Oligopoly Market. Based on your research into supermarkets in the UK, discuss whether this market structure creates a situation that is more or less to the benefit of consumers. For many students studying abroad, they will go to supermarkets every week. The Supermarkets in the United Kingdom sell many different kinds of products and it is easy to find a large supermarket everywhere. There are four big and famous supermarkets in UK, Tesco, Safeway/Morrison, J Sainsbury's and Asda. (Wikipedia, 2009a) These four supermarkets have the largest market share in UK so that it makes the supermarket industry in the UK could be expressed an oligopoly Market. (Wikipedia, 2009a)When it is dominated by a few large companies; a big percentage of the market is shared by these companies; there may or may not be perfect knowledge and high barriers to entry, an oligopoly market …show more content…
In view of the fact that change the price will result in the total revenues, firms do not need to change prices so that the companies can fix a price as they want. It will make them earn the maximum profit in the long run.
Other advantages for the customers are international competition, innovate, economic of scale and research and development. In these four actions, oligopoly will give customers benefits which will attract more consumers.
In conclusion, there are both advantages and disadvantages of UK supermarket industries for customers. What is the most important is the price. The market structures of oligopoly market affect the price. For the government, the most important things is to prevent oligopoly market and keep the perfect competition.
Reference:
• Wikipedia (2009a) [Online], Supermarkets in the United Kingdom. Available at:
The supermarket industry in the UK could be described as an Oligopoly Market. Based on your research into supermarkets in the UK, discuss whether this market structure creates a situation that is more or less to the benefit of consumers. For many students studying abroad, they will go to supermarkets every week. The Supermarkets in the United Kingdom sell many different kinds of products and it is easy to find a large supermarket everywhere. There are four big and famous supermarkets in UK, Tesco, Safeway/Morrison, J Sainsbury's and Asda. (Wikipedia, 2009a) These four supermarkets have the largest market share in UK so that it makes the supermarket industry in the UK could be expressed an oligopoly Market. (Wikipedia, 2009a)When it is dominated by a few large companies; a big percentage of the market is shared by these companies; there may or may not be perfect knowledge and high barriers to entry, an oligopoly market …show more content…
In view of the fact that change the price will result in the total revenues, firms do not need to change prices so that the companies can fix a price as they want. It will make them earn the maximum profit in the long run.
Other advantages for the customers are international competition, innovate, economic of scale and research and development. In these four actions, oligopoly will give customers benefits which will attract more consumers.
In conclusion, there are both advantages and disadvantages of UK supermarket industries for customers. What is the most important is the price. The market structures of oligopoly market affect the price. For the government, the most important things is to prevent oligopoly market and keep the perfect competition.
Reference:
• Wikipedia (2009a) [Online], Supermarkets in the United Kingdom. Available at: