Oligopolistic Market

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Written by:

Lyle A


Date added:

June 6, 2015








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4 / 901


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They only need to control a significant share of the total production or sales. As in a monopoly, an oligopoly can persist only if there are significant barriers to entry to new competitors. Obviously, the presence of relatively few firms in an industry does not negate the existence of competition. The existing few firms may still act independently even while they collude on prices...
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The existing few firms may still act independently even while they collude on prices. In an oligopolistic market, competition often takes the form of increased spending on marketing and advertising to win brand loyalty rather than on reducing prices or increasing the quality of products. Another important characteristic of an oligopoly is interdependence between firms...
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