reply to student response in 150 words , provide 1 reference
Oligopolies do have adverse effects on income distribution. However, I don’t necessarily see anything wrong with this. Oligopolies exist all over the U.S. and the world. I will use cell phone companies as an example. They are dominated by AT&T, Verizon, T-mobile, Sprint, and several slightly smaller companies who are just now becoming prominent such as cricket. Obviously the owners/CEO’s of these companies sit on the wealth of the market, while the rest of or lower echelon of the companies’ employees work is contributing to the wealth of the company. In a perfectly competitive market, there would be enough competition to limit the huge outrageous bonuses that spur a question like this to even be discussed. However the pro’s of having oligopolies dominate most of our markets is still in our, as the consumer’s best interests. We get products which are mass produced, due to the size of the firms making them, there is enough competition for us to choose based on customer satisfaction, there are same as or nearly identical products and in most cases, smaller firms are still trying to break into the larger oligopoly’s like cricket for phone services.
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