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Oligopoly
Beginning of paper
An describes a market situation in which there are limited or few sellers. Each seller knows that the other seller or sellers will react to its changes in prices and also quantities. This can cause a type of chain reaction in a market situation. In the world market there are oligopolies in steel production, automobiles, semi-conducto .... Middle of paper
.... of one firm with respect to output, price, or quality will cause a reaction on the side of other firms.
Many times an leads to price leadership between many firms. A price leadership is the practice in many oligopolistic industries in which the largest firm publishes its price list ahead of its competitors. Then these competitors feel the need to match those announced prices so they lower their prices. This is also termed a parallel pricin ....
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Number of words: 1438
Number of pages: 6 (approx. 250 words per double-spaced page)
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