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Why Prices Often Show Less Variation Under Oligopoly Than Under Other Types Of Market Structure
Essay specific features
Written by:
Lester M
Date added:
January 25, 2017
Level:
University
Grade:
A
No of pages / words:
8 / 2000
Was viewed:
4723 times
Rating of current essay:
Essay content:
There are exceptions of oligopolies that engage in price wars, for example AMD and Intel, semiconductor producers, both use fierce price lowering tactics because when one of them decreases their price of a product the other has nothing else to do but follow in order not to loose a big market share. Intel and AMD price wars are beneficial to the consumers but not to the companies which each year miss their target revenues and get lower profits...
displayed 300 characters
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There are exceptions of oligopolies that engage in price wars, for example AMD and Intel, semiconductor producers, both use fierce price lowering tactics because when one of them decreases their price of a product the other has nothing else to do but follow in order not to loose a big market share. Intel and AMD price wars are beneficial to the consumers but not to the companies which each year miss their target revenues and get lower profits...
displayed 300 characters
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