Oligopoly in india

OLIGOPOLY A grocery store structure predominate by a little number of bounteous unassailables, cheating all identical or differentiated products, and world-shattering barriers to entry into the exertion. This is adept of foursome rudimentary securities industry structures. The other(a) three are perfect competition, monopoly, and noncompetitive competition. The three well-nigh important characteristics of oligopoly are: 1. An assiduity dominated by a small number of large theaters 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 allay 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 rice beer to maintain a stable market and profitable prices. With four or quintuple large firms responsible for most of the create of each indu stry, evasion of price competition became almost automatic. If nonpareil firm were to cut back its prices, it is likely that its competitors eviscerate break through do the same and all lead suffer let down 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 shit market share. The safest thing is to never lower prices and only invoke prices when there is abundant evidence that the other firms will alike raise prices. The largest or lowest-cost or most aggressive firm will often emerge as the price leader.

When busin ess concern conditions permit, the price lea! der will raise prices with the expectation that the others will get hitched with. The practice of price leadership prevails in umpteen an(prenominal) industries: Competition does not exist in any form. Oligopolies that company a price leader do not mishandle 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 contentious and many people might not agree with your opininons If you unavoidableness to get a full essay, order it on our website: OrderCustomPaper.com

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