Explain the implications of the follwing in oligopoly market: (a) Barriers to entry of new firms (b) A few or a few big sellers

Explain the implications of the follwing in oligopoly market: (a) Bar

1.	Explain the implications of the follwing in oligopoly market: (a) Barriers to entry of new firms (b) A few or a few big sellers
Answer» <html><body><p></p><a href="https://interviewquestions.tuteehub.com/tag/solution-25781" style="font-weight:bold;" target="_blank" title="Click to know more about SOLUTION">SOLUTION</a> :(a) The main implication of barriers to entry is that such barriers allow only a limited number of <a href="https://interviewquestions.tuteehub.com/tag/firms-989820" style="font-weight:bold;" target="_blank" title="Click to know more about FIRMS">FIRMS</a> into oligopoly <a href="https://interviewquestions.tuteehub.com/tag/industries-515587" style="font-weight:bold;" target="_blank" title="Click to know more about INDUSTRIES">INDUSTRIES</a>. Such barriers may be in the form of huge capital <a href="https://interviewquestions.tuteehub.com/tag/requirements-25692" style="font-weight:bold;" target="_blank" title="Click to know more about REQUIREMENTS">REQUIREMENTS</a>, patent <a href="https://interviewquestions.tuteehub.com/tag/rights-623807" style="font-weight:bold;" target="_blank" title="Click to know more about RIGHTS">RIGHTS</a>, availability of crucial raw material etc. <br/> (b)A few or few big sellers has the implications that each big seller contributes a fairly large share of total output. This gives an individual seller the power of influencing the market price by changing own output.</body></html>