f major sports events. b) How effectively do the two markets forms that you described in part a meet the criteria for a successful market? A market system exists when producers and consumers interact with one another. For a successful market system to exist the following criteria needs to be meet: does the market? Deliver lower prices, provide greater choice, encourage improvements in the quality of the goods and services traded, encourage the implementation of new technology and foster efficiency in resources allocation and use. Although there is some price competition in an oligopoly market system the price is still high, as firms compete with one another. But the choice in this market system is better than in a monopoly market system where there is only one product. In a monopoly system like the oligopoly the price tends to be high, as there is only one producer. Due to in a monopoly being only one seller, there is no close substitute, so there fore there is no pressure to improve the product. Unlike in an oligopoly market system the quality of the product is good, as firms compete with one another and try to improve their products. New technology plays an important part in both market systems. In an oligopoly there is strong incentive to produce new technology to differentiate each firms products. As in a monopoly market system innovation is needed to maintain a monopoly. It can be said that an oligopoly market system is more effective than a monopoly markets system, but only at an economic level otherwise it wasteful on advertising. Otherwise monopoly is ineffective to no competition. In other terms, there is no market system, which fully satisfy the market system criteria. Both of these market systems lack in some features to fully satisfy the criteria for a successful market system. While the oligopoly provides better quality products, it has high prices. While the monopoly has only one product it also has high prices. For a s...
