Supermarket in Uk

Microeconomics Essay The supermarket industry in the UK could be described as an Oligopoly Market. base on your research into supermarkets in the UK, discuss whether this market social organisation defecates a situation that is more or less to the realize 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 motiveless to find a large supermarket everywhere. There are quadruple big and famous supermarkets in UK, Tesco, Sa hardly a(prenominal)ay/Morrison, J Sainsburys and Asda. (Wikipedia, 2009a) These four supermarkets put up 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 or industry will exists. It can be argued that customers lose benefit. Oligopoly is unitary of the market structures. It means there are just a few companies in the market and each company is self-government. (Anderton, 2004) one example is the UK supermarket industry.

Although there are many smaller companies in the market, there are four main companies (Tesco, Safeway/Morrison, J Sainsburys and Asda). price in an oligopoly is that the firms co-operate to charge the same price and hence create a position similar to a monopoly. (tutor2u, 2007) However, it is different in the UK supermarket industry. The cost of the goods in all the supermarkets will not be almost the same, because the larger supermarkets will have impose command overhead costs, (bnet, 2009) so that his four supermarkets are able to charge lower cost than the smaller ones. Besides, because of the non-price competition, it is unfair to the small companies. In the amiss competition, price is not the most important things. These four companies... If you postulate to get a full essay, order it on our website: Ordercustompaper.com

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