Disadvantages/Demerits of Oligopolistic market
- Distortion of consumer’s choice through advertising
- Exploitation of consumers through over charging due to collusion/profit maximization motives
- Duplication and hence wastage of resources
- Worsen /cause income inequality
- Limited employment opportunities are created due to barriers to entry
- Limited investment/entrepreneurship development
- Limited variety of goods in perfect oligopoly markets
- Lead to collapse of small firms due to competition
CATEGORIES Economics
TAGS Dr. Bbosa Science
