What do you mean by oligopolistic power
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Answer:
Oligopoly is a market structure with a small number of firms, none of which can keep the others from having significant influence. The concentration ratio measures the market share of the largest firms. A monopoly is one firm, duopoly is two firms and oligopoly is two or more firms.
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1. Meaning of Oligopoly The term "oligopoly" is derived from two greek words - oligos' means few a `pollein' means to sell. Oligopoly refers to a market situation in which the number of sellers dealing in a homogeneous or differentiated product is small. It is also known as competition among the few; each seller has a direct and ascertainable influence upon every other seller in the industry.
Characteristics of Oligopoly
The following are the main characteristics of the oligopoly. They are:
a Very few sellers of the product.
b. Presence of monopoly power .
c. existence of price rigidity .
d. excessive expenditure on advertisement .
e. interdependence