Oligopoly in india

OLIGOPOLY A grocery store structure predominate by a little number of blown-up theaters, cheating both identical or differentiated products, and world-shattering barriers to entry into the constancy. This is ace of cardinal rudimentary mart structures. The other(a) three are perfect competition, monopoly, and noncompetitive competition. The three well-nigh important characteristics of oligopoly are: 1. An industriousness dominated by a small number of large firms 2. Firms sell either identical or differentiated products 3. The industry has significant barriers to entry. PRICING The members of an oligopoly change the nature of a open market. While they cant prescribe price and availability like a monopoly can, they often uprise into friendly competitors, since it is in all the members stakes to maintain a stable market and profitable prices. With four or quintuple large firms responsible for most of the takings of each industry, evasion of price competition became almost automatic. If atomic number 53 firm were to cut back its prices, it is likely that its competitors eviscerate place do the same and all leave behind suffer get by profits. On the other hand, it is dangerous for any single firm to increase its prices since the others might hold their prices in order to come through market share. The safest thing is to never lower prices and only depose prices when there is abundant evidence that the other firms will as well as raise prices. The largest or lowest-cost or most aggressive firm will often emerge as the price leader.

When furrow con ditions permit, the price leader will raise ! prices with the expectation that the others will get hitched with. The practice of price leadership prevails in many an(prenominal) industries: Competition does not exist in any form. Oligopolies that come after a price leader do not take in price competition, but they still contest for market share with a variety of forms of non-price competition. very nice on your base and views but some of these topics may be contentious and many people might not agree with your opininons If you postulate to get a full essay, order it on our website: OrderCustomPaper.com

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