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“Real competition exists in oligopoly market.” Explain this statement. |
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Answer» Oligopoly refers to a market form, in which there are small number of companies that produce the same product or a slightly different product. In such a case, the policies of a firm depend on how they think the rival competitors will react to their move. Producers being less, they are able to monitor the moves of competitor firms, and they are even prepared to find solutions to each other’s strategies. Due to this, a fierce competition is seen among firms in oligopolic market. This is why it is said that real competition is seen in oligopolic market. |
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