Ogilopoly

oligopoly definition characteristics kinked demand curve model collusion and wherefore such agreements argon unstable welf atomic number 18 and benefit to alliance toll stickiness MARKET STRUCTURES: Oligopoly: Definition: In an oligopoly, there atomic number 18 only a few warms that throw off up an constancy. This select group of firms has program line over the price and, equivalent a monopoly, an oligopoly has high barriers to entry. The products that the oligopolistic firms produce are frequently  roughly identical and, therefore, the companies, which are competing for market share, are mutually practiced as a result of market forces. Assume, for example, that an economy conduct only 100 wid comes. accompany X produces 50 widgets and its competitor, happy set Y, produces the new(prenominal)(a) 50. The prices of the two brands give be interdependent and, therefore, similar. So, if colleague X starts selling the widgets at a lower price, it d epart get a greater market share, thereby forcing party Y to lower its prices as well. Oligopolistic industries are nonhing if not diverse. both(prenominal) sell identical products,others differentiated products. Some be feature of three or four firms of nearly equal size,others devote in one large dominate firm (a fetch industry leader) and a handful of smallers firms (that folloas the leader).

Some sell arbitrate goods to other producers and others sell consumer good directly to the public. However,through this diversity ,all oligopolistic industries pledge in similar types of behaviour. The most note d behaviour tendencies are: (1)Interdependen! t decisiveness making, (2) relatively constant price,(3)competition in ways that do not involve prices,(4)the legal merger of two or to a greater extent firms and (5) the illegal collusion among firms to control price and production. Interdependence. Each firm is an olgopolistic industry keeps a virtually eye on the activities of other firms in the industry. Because oligopolistic firms engage in competition among the few,decisions made by one firm constantly affect others. Competitions among...If you want to get a full essay, disposition it on our website: BestEssayCheap.com

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