Explain the feature "few firms" and its implications in an oligopoly m

1.	Explain the feature "few firms" and its implications in an oligopoly market
Answer» <html><body><p></p>Solution : Few firms: Under oligopoly, there are few large firms. The exact no. of firms is not defined. Each firm produces a significant portion of the total output. There exists severe competition among different firms and each firm try to <a href="https://interviewquestions.tuteehub.com/tag/manipulate-1086088" style="font-weight:bold;" target="_blank" title="Click to know more about MANIPULATE">MANIPULATE</a> both prices and volume of production to <a href="https://interviewquestions.tuteehub.com/tag/outsmart-7703000" style="font-weight:bold;" target="_blank" title="Click to know more about OUTSMART">OUTSMART</a> each other.Implication is that the no. of firmsis so small that an action by any one firm is likely to affect the rival firms. So, <a href="https://interviewquestions.tuteehub.com/tag/every-976721" style="font-weight:bold;" target="_blank" title="Click to know more about EVERY">EVERY</a> firm <a href="https://interviewquestions.tuteehub.com/tag/keeps-1063393" style="font-weight:bold;" target="_blank" title="Click to know more about KEEPS">KEEPS</a> a close watch on the activities of rival firms.</body></html>

Explain the feature "few firms" and its implications in an oligopoly market