Define the concept of oligopoly market. Also signifies its features
Answers
Oligopoly is the form of market in which there are few sellers or few large firms, intensely competing against one another and recognizing interdependence in their decision-making.
Features of Oligopoly :
1. Few sellers.
2. All the firms produce homogeneous or differentiated product
3. Under oligopoly demand curve cannot be determined. It has a kinked demand curve.
4. All the firms are interdependent in respect of price determination.
5. Price rigidity.
Definition: The Oligopoly Market characterized by few sellers, selling the homogeneous or differentiated products. In other words, the Oligopoly market structure lies between the pure monopoly and monopolistic competition, where few sellers dominate the market and have control over the price of the product.
Features:
Under oligopoly, there are only a few firms, each producing a homogeneous or slightly differentiated product. Since the number of firms is small, each firm enjoys a large share of the market and has a significant influence on the price and output decisions.