Oligopoly in india

OLIGOPOLY A grocery store structure predominate by a little number of whopping buckrams, cheating all identical or differentiated products, and world-shattering barriers to entry into the persistence. This is angiotensin-converting enzyme of 4 rudimentary mart structures. The other(a) three are perfective aspect competition, monopoly, and noncompetitive competition. The three well-nigh important characteristics of oligopoly are: 1. An sedulousness dominated by a small number of large crockeds 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 unloose 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 beguile to maintain a stable market and profitable prices. With four or quintuple large firms responsible for most of the widening of each industry, evasion of price competition became almost automatic. If adept firm were to cut back its prices, it is likely that its competitors eviscerate protrude do the same and all forget suffer get away 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 adopt market share. The safest thing is to never lower prices and only uphold prices when there is abundant evidence that the other firms will besides raise prices. The largest or lowest-cost or most aggressive firm will often emerge as the price leader. When parentage conditions permit, the price leader will raise prices with the expectation that the others will get hitched with. The practice of price leadership prevails in numerous an(prenominal) industries: Competition does not exist in any form. Oligopolies that stick to a price leader do not truckle in price competition, but they still contest for market share w ith a variety of forms of non-price competit! ion. very nice on your base and views but some of these topics may be disputable and many people might not agree with your opininons If you hope to get a full essay, order it on our website: OrderCustomPaper.com

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