Possible advantages of monopoly and oligopoly markets Economies of scale Fewer and larger suppliers may be able to take advantage of economies of scale and reduced costs. Secure employment Employees who work for monopolies and oligopolies tend to have more secure jobs.
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Possible disadvantages of monopoly and oligopoly markets High prices
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Without competition, monopolies and oligopolies often charge higher prices. This is not good for consumers. Example: When Aer Lingus and British Airways controlled all flights between Ireland and the UK, ticket prices were very expensive. No innovation
With little or no real competition to keep them alert, monopolies and oligopolies may not be very good at being innovative or using their resources efficiently.
Research
1. OPEC is a very important oligopoly. What is it and what products does it supply?
2. Daz, Ariel and Bold are washing powders owned by the same multinational company. This company uses its economies of scale to produce lots of similar household products with different brand names in order to maintain a very powerful oligopolistic position in the market. Find out the name of this company.
