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OLIGOPOLY CHARACTERISTICS
The oligopoly form of market is characterized
by:
- A few large dominant firms, with many small
ones, a product either standardized or
differentiated,
- Power of dominant firms over price, but fear
of retaliation,
- Technological or economic barriers to
become a dominant firm,
-Extensive use of nonprice competition
because of the fear of price wars.
OLIGOPOLY CONCENTRATION
An
OLIGOPOLY CONCENTRATION
CAUSES
The
Oligopoly
Key
features of oligopoly
barriers to entry
interdependence of firms
Competition
Collusive
versus collusion
oligopoly: cartels
Oligopoly
Key
features of oligopoly
barriers to entry
interdependence of firms
Competition
Collusive
versus collusion
oligopoly: cartels
Oligopoly
Tacit
collusion
Oligopoly
Tacit
collusion
Oligopoly
Tacit
collusion
Oligopoly
Few firms
Open with each other
Similar production methods and average costs
Similar products
Dominant firm
Significant entry barriers
Stable market
No government measures to curb collusion
D
P1
D
O
Q1
fig
Oligopoly
Non-collusive
MC2
MC1
P1
D AR
b
O
Q1
MR
Oligopoly
Non-collusive
Oligopoly
Non-collusive
advantages
Oligopoly
Non-collusive
curve theory
advantages
disadvantages
Oligopoly
Non-collusive
advantages
disadvantages
difficulties in drawing general conclusions