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What is the price pattern at which collusive oligopoly operate on?
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Difference between collusive and non-collusive oligopoly?
If in an oligopoly market, the firms compete with each other, it is called a non-collusive, or non-cooperative oligopoly. If the firm cooperate with each other in determining price or output or both, it is called collusive oligopoly, or cooperative oligopoly. Collusive oligopoly exists when the firms in an Oligopolistic market charge the same prices for their products, in affect acting as a monopoly but dividing any profits that they make. Non collusive oligopoly exists when the firms in an oligopoly do not collude and so have to be very aware of the reactions of other firms when making price decisions.
What are the types of oligopoly?
Oligopoly is a market from where large numbers of buyers contact few sellers for the purpose of buying and selling things. The different types are a pure oligopoly, a differentiated oligopoly, a collusive oligopoly, and a non-collusive oligopoly.
What is the price elasticity in a oligopoly?
in oligopoly what is the nature of price elasticity
Price and output determination under oligopoly?
Explain how price and output decision are taken under conditions of oligopoly.
Price wars are prima facie evidence of what economic market?
Oligopoly
What are characteristics of oligopoly?
An oligopoly is characterized by a market with a few firms having a negligible effect on price.
Why the demand curve in an oligopoly is kinked?
because oligopolistic firms are unlikely to benefit from a reduction in prices, it is something known as game theory, each firm is attempting to get the edge over their competitor, but not with prices. This is because if one firm reduces their prices, it is highly likely that the others will do the same and in the end all parties finish with the same market share as when the price war erupted; but because they reduced prices, profit is lost, with no benefit for the firm
Non-price competition tends to be a consequence of which market structure?
Oligopoly
What is the meaning of the word oligopoly?
An oligopoly is an intermediate market structure between the extremes of perfect competition and monopoly. Oligopoly firms might compete (noncooperative oligopoly) or cooperate (cooperative oligopoly) in the Marketplace.
Why does differentiating its product allow an oligopoly to charge a higher price?
Prevents new firms from entering the industry
What forms can non-price competition take in monopolistic competition and oligopoly?
they take place in those areas
What has the author Margaret Bray written?
Margaret Bray has written: 'Price-setting oligopoly with customer search costs'
