The extent of oligopoly

n they do, inefficiency worsens, and they tend to come under the scrutiny of government antitrust laws. Alternatively, oligopolistic firms tend to be a prime source of innovations, innovations that promote technological advances and economic growth.
             Oligopoly exists when there are a small number of firms selling in a single market. The usual reason for this situation is that the optimal size of firm, the size at which average cost is minimized, is so large that there is only room for a few such firms. The situation differs from perfect competition because each firm is large enough to have a significant effect on the market price. It differs from monopoly because there is more
             Than one firm. It differs from monopolistic competition because the firms are few enough and their products similar enough that each must take account of the behavior of all the others. The number of firms may be fixed, or it may be free to
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The extent of oligopoly. (1969, December 31). In MegaEssays.com. Retrieved 11:00, March 29, 2024, from https://www.megaessays.com/viewpaper/38529.html