Oligopoly
A market in which few sellers are available
and sell their products. There product will be homogeneous or different in
quality. The firm will be three, five or seven. We are not sure about how much
they are but they are few. So some time, we also mention competition between
few firms. They are few firms so they are able to influence each other buy
decision making.
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| Oligopoly |
Characteristics of Oligopoly
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Competition
– it is a part of the oligopoly markets because there are few firm and they
influence each other buy decision making
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Inter-dependence
- firm are inter-dependence because they aware about market & value of
advertisement & pricing policy
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Advertisement
– a firm spent lot of amount on advertisement to show his presence in the
industry
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Barriers
for new firm – due to fast competition, there are no ban for new one but in the
long run particular firm face lot of difficulty regarding cost, production
scale or patient etc
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Different
size – in this market all firm not have the same size. Some-one is big and
other is small in size
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Demand
curve – it is very difficult to draw a demand curve in this market. We do not
know about accurate production behaviour and decision making. So it becomes a
lengthy structure but we mention it as a ‘kinked Curve’.
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