Features of an Oligopolistic market structure
- Few firms/suppliers and many buyers existing in the market
- Homogeneous products (perfect oligopoly) and differentiated products (imperfect oligopoly)
- Price wars/cut throat competition
- Price leadership for largest and low cost firms
- Non-price competition through advertising, after sales services, etc.
- Mutual dependence among firms.
- Limited information about the market
- Limited variety of products
- Abnormal profit earned both in short run and long run.
- P= AR> MR = MC at equilibrium level of output
- High degree of uncertainty
- No unique pattern of pricing/ kinked demand curve
- profit maximization
CATEGORIES Economics
TAGS Dr. Bbosa Science
