Oligopoly An oligopoly describes a mart situation in which there are limited or few sellers. Each seller knows that the other(a) seller or sellers go out react to its changes in prices and as well quantities. This can cause a type of chain response in a market situation. In the world market there are oligopolies in steel production, automobiles, semi-conductor manufacturing, cigarettes, cereals, and also in telecommunications. Often times oligopolistic industries supply a similar or identical product. These companies tend to maximize their profits by forming a trustfulness and acting like a monopoly.
A cartel is an association of producers in a certain industry that control to set common prices and output quotas to prevent competition. The larger the cartel, the to a greater extent likely it will be that each member will increase output and cause the price of a unassailable to be lower. The majority of time an oligopoly is used describe a world market; however, the term oligopoly also describes conditions in sma...If you pauperism to get a full essay, order it on our website:
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