Give the differences between collusive and non-collusive oligopoly.
Asked by Topperlearning User | 26th Apr, 2016, 07:51: AM
Collusive oligopoly is a form of market in which few firms form a mutual agreement to avoid competition. They form a cartel and fix the output quotas and the market price. Leading firm in the market is accepted by the cartel as a price leader. All the firms in the cartel accept the price as fixed by the price leader.
Non-collusive oligopoly is a form of market in which few firms. Each firm has its price and output policy is independent of the rival firms in the market. The entire firms enable to increase its market share through competition in the market.
Answered by | 26th Apr, 2016, 09:51: AM
- Mention the feature that makes the monopolistic competition different from a perfect competition.
- What is cartel?
- What is monopolistic competition?
- How monopolistic firm enjoy the partial control over price?
- Why there are few firms in an oligopoly market?
- Explain the demand curve of a firm under monopolistic competition.
- What are the features of monopolistic competition?
- What are the features of oligopoly market?
- Under oligopoly, the firm’s demand curve is indeterminate. Justify.
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