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Essay

Oligopoly

Essay specific features

 

Issue:

Miscellaneous

 

Written by:

Paul N

 

Date added:

January 20, 2015

 

Level:

University

 

Grade:

A

 

No of pages / words:

5 / 1382

 

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7260 times

 

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Essay content:

The larger the cartel, the more likely it will be that each member will increase output and cause the price of a good to be lower. The majority of time an oligopoly is used describe a world market; however, the term oligopoly also describes conditions in smaller markets where a few gas stations, grocery stores or alternative restaurants or establishments dominate in their fields...
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A distinguishing characteristic of an oligopoly is the interdependence of firms. This means that any action on the part of one firm with respect to output, price, or quality will cause a reaction on the side of other firms. Many times an oligopoly leads to price leadership between many firms. A price leadership is the practice in many oligopolistic industries in which the largest firm publishes its price list ahead of its competitors...
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