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Questions and Answers
What does an oligopoly refer to?
What does an oligopoly refer to?
What kind of products do oligopolistic markets usually have?
What kind of products do oligopolistic markets usually have?
How do firms in oligopolistic markets influence prices?
How do firms in oligopolistic markets influence prices?
What is a characteristic of firms in an oligopoly?
What is a characteristic of firms in an oligopoly?
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What may oligopolies resort to in order to maximize profits?
What may oligopolies resort to in order to maximize profits?
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In an oligopolistic market, what can firms influence through manipulating the supply function?
In an oligopolistic market, what can firms influence through manipulating the supply function?
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What do firms in oligopolistic markets tend to resort to in order to maximize profits?
What do firms in oligopolistic markets tend to resort to in order to maximize profits?
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What situation may lead to the development of oligopolies without collusion?
What situation may lead to the development of oligopolies without collusion?
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What is a characteristic of products in oligopolistic markets?
What is a characteristic of products in oligopolistic markets?
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Why are firms in an oligopoly mutually interdependent?
Why are firms in an oligopoly mutually interdependent?
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Study Notes
Oligopoly Definition
- An oligopoly refers to a market structure where a small number of firms compete with each other, and each firm has a significant influence on the market.
Characteristics of Oligopolistic Markets
- Oligopolistic markets usually have products that are either homogenous or differentiated.
- Firms in oligopolistic markets influence prices through strategic decision-making, as each firm's actions affect the others.
Firm Characteristics
- A characteristic of firms in an oligopoly is that they are mutually interdependent, meaning each firm's success depends on the actions of the other firms in the market.
Maximizing Profits
- To maximize profits, oligopolies may resort to collusion, such as price-fixing or output determination.
- Firms in oligopolistic markets tend to resort to non-price competition, such as advertising and product differentiation, in order to maximize profits.
- By manipulating the supply function, firms in oligopolistic markets can influence prices and output.
Development of Oligopolies
- A situation that may lead to the development of oligopolies without collusion is the presence of significant barriers to entry, which prevents new firms from entering the market.
Product Characteristics
- A characteristic of products in oligopolistic markets is that they are often branded and have distinct features that differentiate them from each other.
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Description
Test your knowledge of oligopoly markets and their characteristics with this quiz. Explore concepts such as market control, product homogeneity, and the impact of few large sellers on industry dynamics.
