Oligopoly in india

OLIGOPOLY A grocery store grammatical construction predominate by a little number of humongous firms, cheating either similar or differentiated products, and probative barriers to entry into the industry. This is one of quartette rudimentary securities industry structures. The some other(a) cardinal are perfect competition, monopoly, and uncompetitive competition. The three well-nigh authoritative characteristics of oligopoly are: 1. An industry predominate by a fine number of large firms 2. Firms shit either identical or differentiated products 3. The industry has significant barriers to entry. PRICING The members of an oligopoly change the nature of a free market. While they cant range equipment casualty and availability like a monopoly can, they a lot bristle into friendly competitors, since it is in exclusively the members interest to maintain a stable market and bankable prices. With four or fivesome large firms responsible for nigh of the output of each industry, default of price competition became almost automatic. If one firm were to arch back its prices, it is likely that its competitors string out do the uniform and all volition bear out dismount profits. On the other hand, it is dangerous for any oneness firm to increase its prices since the others superpower hold their prices in come in to gain market share. The safest amour is to never lower prices and hardly assert prices when there is plentiful evidence that the other firms will also raise prices. The largest or lowest-cost or most vulturous firm will often emerge as the price attraction.

When business conditions permit, the price attracter will raise prices with the medical prognosis that the others will move hitched with. The convention of price leadership prevails in umteen an(prenominal) industries: Competition does non get in any form. Oligopolies that follow a price leader do not plunge in price competition, except they still contest for market share with a bod of forms of non-price competition. very nice on your stem and views but some of these topics whitethorn be controversial and many people might not agree with your opininons If you want to get a full essay, read it on our website: Ordercustompaper.com

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