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have so Iar discussed where there is a very large number of producers supplying a market as under perfect competition. or a millie monopolist an individual or a single group or individuals. dominates the enure nuu kct, or there arc many producers as in imperfect competition hut not as many ‘” ill perfect competition. But other situation may also arise in the real world. One i~ that there may be two monopolists instead or one who share the monopoly power This IS called The other is when more than two or a few seller, arc round in a ruonopoli-tic position. This is calico

Important characteristics or an oligopolistic situation arc: (t/) very seller can exercise an important influence on the price-output policies of his rivals. (hI Every seller. therefore, is so influential that his rivals cannot ignore the likely ad on them or a given change in the price output policy of any singil: manulucturct (c) This rival consciousness, or the recognition on thc part of the seller (If the Act of interdependence is the most important feature of oligopolistic situation. lei) The demand I (‘ under oligopoly ‘terminate as WI.  because any en by his rivals

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Is compared with perfect competition, the numher (If firms in an oligopoly is much smaller. Oligopoly differs from monopoly and monopolistic competition in this that. in monopoly, there is a single seller; in monopolistic competition. there is quite a large number of them; and in oligopoly, there is only a small number of sellers. We discuss these two market situations at some length below:

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