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ChatGPT
Oct 6
1. Few large firms: Oligopoly is characterized by a market structure where there are only a few large firms that dominate the industry. These firms have significant market power and can influence prices and output levels.
2. Interdependence: In an oligopoly, firms are interdependent on each other's actions. Any decision made by one firm can have a direct impact on the other firms in the industry. This leads to strategic decision-making and competition among the firms.
3. Barriers to entry: Oligopolies often have high barriers to entry, making it difficult for new firms to enter the market and compete with the existing firms. This can include high start-up costs, economies of scale, and access to distribution channels.
4. Non-price competition: In oligopolistic markets, firms often engage in non-price competition to differentiate their products and attract customers. This can include advertising, product innovation, and customer service.
5. Price rigidity: Oligopolies tend to have price rigidity, where prices remain relatively stable over time. This is because any price changes by one firm can trigger a reaction from other firms, leading to a price war that can be detrimental to all firms involved.
2. Interdependence: In an oligopoly, firms are interdependent on each other's actions. Any decision made by one firm can have a direct impact on the other firms in the industry. This leads to strategic decision-making and competition among the firms.
3. Barriers to entry: Oligopolies often have high barriers to entry, making it difficult for new firms to enter the market and compete with the existing firms. This can include high start-up costs, economies of scale, and access to distribution channels.
4. Non-price competition: In oligopolistic markets, firms often engage in non-price competition to differentiate their products and attract customers. This can include advertising, product innovation, and customer service.
5. Price rigidity: Oligopolies tend to have price rigidity, where prices remain relatively stable over time. This is because any price changes by one firm can trigger a reaction from other firms, leading to a price war that can be detrimental to all firms involved.
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Google Gemini AI
Oct 6
1. Few Firms:
Oligopoly is characterized by a small number of firms dominating a significant portion of the market. This concentration of power allows firms to influence market conditions and prices.
2. High Barriers to Entry:
Oligopolistic markets often have high barriers to entry, making it difficult for new firms to enter the market. These barriers can include economies of scale, patents, or government regulations.
3. Interdependence:
Firms in an oligopoly are interdependent, meaning their decisions affect each other's profits. This interdependence leads to complex strategic interactions and price wars.
4. Non-Price Competition:
Oligopolistic firms often engage in non-price competition, such as advertising, product differentiation, or technological innovation, to gain market share instead of competing primarily on price.
5. Collusion and Cooperation:
In some cases, oligopolistic firms may collude or cooperate to reduce competition and maximize profits. This can involve agreements to set prices, divide the market, or limit output.
Oligopoly is characterized by a small number of firms dominating a significant portion of the market. This concentration of power allows firms to influence market conditions and prices.
2. High Barriers to Entry:
Oligopolistic markets often have high barriers to entry, making it difficult for new firms to enter the market. These barriers can include economies of scale, patents, or government regulations.
3. Interdependence:
Firms in an oligopoly are interdependent, meaning their decisions affect each other's profits. This interdependence leads to complex strategic interactions and price wars.
4. Non-Price Competition:
Oligopolistic firms often engage in non-price competition, such as advertising, product differentiation, or technological innovation, to gain market share instead of competing primarily on price.
5. Collusion and Cooperation:
In some cases, oligopolistic firms may collude or cooperate to reduce competition and maximize profits. This can involve agreements to set prices, divide the market, or limit output.
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