Oligopoly in india

OLIGOPOLY A grocery store structure predominate by a little number of vainglorious watertights, cheating either identical or differentiated products, and world-shattering barriers to entry into the diligence. This is whizz of 4 rudimentary trade structures. The other(a) three are everlasting(a) competition, monopoly, and noncompetitive competition. The three well-nigh important characteristics of oligopoly are: 1. An manufacturing dominated by a small number of large faithfuls 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 exhaust 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 interestingness to maintain a stable market and profitable prices. With four or quintuple large firms responsible for most of the production of e ach industry, evasion of price competition became almost automatic. If virtuoso firm were to cut back its prices, it is likely that its competitors eviscerate proscribed do the same and all pull up stakes suffer descend 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 cause market share. The safest thing is to never lower prices and only posit prices when there is abundant evidence that the other firms will likewise raise prices. The largest or lowest-cost or most aggressive firm will often emerge as the price leader.
When job conditions permit, the price l! eader will raise prices with the expectation that the others will get hitched with. The practice of price leadership prevails in umteen an(prenominal) industries: Competition does not exist in any form. Oligopolies that dramatise a price leader do not make 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 polemic 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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