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Analyse The Structure Of The Market Structure Of Oligopoly And The Difficulty In Predicting Output And Profits
Market structure of oligopoly
Oligopoly is a market structure where there are a few firms producing all or most of the market supply of a particular good or service and whose decisions about the industry's output can affect competitors. Examples of oligopolistic structures are supermarket, banking industry and pharmaceutical industry.
The characteristics of the oligopoly are:
Small number of large firms dominate the industry
High degree of interdependence: the behaviour of firms are affected by what they believe other rivalry firms might do
High barriers to entry that restrict new firms to enter the industry e.g. control of technology
Price stability within the markets
Goods are highly differentiated or standardized
Non price competitive e.g. free deliveries and installation, extended warranties
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Title: Market Structure Of Oligopoly
Approximate Word Count: 1648
Approximate Pages: 7 (250 words per double-spaced page)
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