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Oligopoly
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An describes a market situation in which there are limited or few sellers. Each seller knows that the other seller or sellers will react to its changes in prices and also quantities. This can cause a type of chain reaction in a market situation. In the world market there are oligopolies in steel production, automobiles, semi-conductor manufact ....
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.... competitors. Then these competitors feel the need to match those announced prices so they lower their prices. This is also termed a parallel pricing.
Oligopolies tend to be broken down into one of two distinguished groups. These groups are either a homogeneous or differentiated . Homogeneous oligopolies have a standardized product and which .... |
| Word count: 1438 |
Page count: 6 |
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