Advertisement Remove all ads

Explain the Implications of the Following in an Oligopoly Market - Economics

Advertisement Remove all ads
Advertisement Remove all ads
Advertisement Remove all ads

Explain the implications of the following in an oligopoly market:

Inter- dependence between firms

Advertisement Remove all ads

Solution

Interdependence between firms:- In an oligopoly market, the price and level of output of one firm impacts the price and level of output of rival firms. Keeping this impact in mind, a firm decides the price and output in accordance with prevailing market conditions. Hence, a high degree of interdependence exists among competing firms, especially with respect to price and quantity of output.

Concept: Main Market Forms
  Is there an error in this question or solution?

Video TutorialsVIEW ALL [2]

Advertisement Remove all ads
Share
Notifications

View all notifications


      Forgot password?
View in app×