Discuss the primary reason for'indeterminateness of demand curve' under the oligopoly form of market

Discuss the primary reason for'indeterminateness of demand curve' unde

1.	Discuss the primary reason for'indeterminateness of demand curve' under the oligopoly form of market
Answer» Solution :Under oligopoly, the exact BEHAVIOR pattern of a producer cannot be determined with CERTAINTY. So, demand curve faced by oligopolist is indeterminate(UNCERTAIN). As firms are interdependent, a firm cannot ignore the reaction of the rival firms. Any change in price by one firm MAY lead to change in prices by the competing firms. So, demand curve keeps on shifting and it is not definite, rather it is indeterminate.