Oligopoly is a market structure in which a small number of from produce most of an industry's output. under oligopoly, price/ output decision of firm are interdependent in the sensors that is one form change its price, The Other firm May react and this knowledge is incorporated into the price/output decision problem. in oligopoly as in the case of monopoly barrier of entry can be substantial and it may be possible for firm to earn above normal profit even in the long run. in other instances competition among of you form can be Vikas and above normal profit may be observed in the short run.
feature of oligopoly
- small number of sellers
- interdependence of decision making
- barrier to entry (huge investment requirement, strange customers loyalty, product quality, economic of scale like exchange value, inflation rate and fiscal rate)
- intermediate price and output
sources of oligopoly
- huge capital investment
- economy of like exchange value, inflation rate and fiscal rate)
- sales organisation
- merger and takeover
- patent right
- industrial output
- control over raw material s
- modern industry
