Question

Why oligopoly market demand curve undetermined ?

Answer 1

Heya...

Oligopoly market ---

It is the form of market in which there are few no of big firms ,

Yes , the demand curve of these markets is indeterminate because :-

√ High degree of interdependency

Explaiination _______
_____________________

• A firm is dependent on each other for the price setting as if a firm want to increase its price may be the reveal firm will not so it will have to bear loose...

Thus a firm can't adjust its products prices due to market insecurity and remain dependent...

Thank you

Answer 2

Unlike other market structures, under Oligopoly, it is not possible to determine the demand curve of a firm. This is because on one hand, there is a huge interdependence among rivals. ... The rivals can react in different ways when a firm changes its price and that makes the demand curve indeterminate.