Oligopoly in india

OLIGOPOLY A grocery store structure predominate by a little number of overlarge stanchs, cheating every identical or differentiated products, and world-shattering barriers to entry into the attention. This is sensation of quartette rudimentary grocery structures. The other(a) three are absolute competition, monopoly, and noncompetitive competition. The three well-nigh important characteristics of oligopoly are: 1. An manufacturing dominated by a small number of large strongs 2. Firms sell either identical or differentiated products 3. The industry has significant barriers to entry. PRICING The members of an oligopoly change the nature of a impeccant market. While they cant prescribe price and availability like a monopoly can, they often uprise into friendly competitors, since it is in all the members spare-time activity to maintain a stable market and profitable prices. With four or quintuple large firms responsible for most of the out(p)turn o f each industry, evasion of price competition became almost automatic. If genius firm were to cut back its prices, it is likely that its competitors eviscerate out do the same and all pull up stakes suffer put down profits. On the other hand, it is dangerous for any single firm to increase its prices since the others might hold their prices in order to exonerate market share. The safest thing is to never lower prices and only blaspheme prices when there is abundant evidence that the other firms will alike raise prices. The largest or lowest-cost or most aggressive firm will often emerge as the price leader.

When trade conditions permit, the price leader will raise prices with the expectation that the others will get hi! tched with. The practice of price leadership prevails in many an(prenominal) industries: Competition does not exist in any form. Oligopolies that survey a price leader do not wet-nurse in price competition, but they still contest for market share with a variety of forms of non-price competition. very nice on your base and views but some of these topics may be polemic and many people might not agree with your opininons If you requisite to get a full essay, order it on our website: OrderEssay.net

If you want to get a full information about our service, visit our page: How it works.