Discuss the primary reason for 'indeterminateness of deamand curve' under the oligopoly from of market.

Discuss the primary reason for 'indeterminateness of deamand curve' un

1.	Discuss the primary reason for 'indeterminateness of deamand curve' under the oligopoly from of market.
Answer» Solution :PRIMARY reason for indeterminateness of demand curve under oligopoly from of market si that firm under oligopoly are MUTUALLY interdependent i.e., actins regarding change in price and output policy of one firm depend one the ACTIONS, reactions of the other firms. Since the firm always considers the probable reaction it might get after any ACTION is taken by it, there is ncertain nature and position of deamand curve under this market form. Any change in price by one firm MAY or may not lead to change in prices by the rival firms. Therefore the demand curve is not definite.