Oligopoly
It is the market situation in which there are large number of buyers but only few sellers of a product
for example, mobile companies, etc.
Features of the oligopoly
1) Large number of buyers
no individual buyer can influence market demand
2) Few sellers of product
each seller can partially control the market supply
3) Inter dependence in decision-making
If there is a fall in price of one company's product, it may lead to fall in price of another firms.
4) High barriers to enter
Huge investment is required
5) Advertisement expenses
80% of advertisement are done for oligopoly market
6) Indeterminate demand curve
If one firm reduce its price, other will follow.
Comments
Post a Comment