Distinguish between Perfectly Competitive market and Oligopoly market on
the basis of Number of firms, nature of Product and Selling and distribution cost.
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(1) The oligopolistic industry consists of a large dominant firm and a number of small firms. (2) The dominant firm sets the market price. (3) All other firms act like pure competitors, which act as price takers. Their demand curves are perfectly elastic for they sell the product at the dominant firm's price.
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