Write down any two characteristics of oligopoly market.

1.	Write down any two characteristics of oligopoly market.
Answer» Following are the two characteristics of oligopoly competition (a) Interdependence : Under oligopoly, a firm cannot take independent price and output decisions. Since the number of competitive firms is limited, therefore each firm must keep in mind the reactions of the rival companies. The price and output decision of an oligopoly firm has a great impact on the price and output decision of the rival companies. (b) Role of Selling Costs : Advertising plays a big role in an oligopolic market, compared to other market systems. A large expenditure is required on advertising and sales promotion techniques to maintain and increase current market share.

Answer»

Following are the two characteristics of oligopoly competition

(a) Interdependence : Under oligopoly, a firm cannot take independent price and output decisions. Since the number of competitive firms is limited, therefore each firm must keep in mind the reactions of the rival companies. The price and output decision of an oligopoly firm has a great impact on the price and output decision of the rival companies.

(b) Role of Selling Costs : Advertising plays a big role in an oligopolic market, compared to other market systems. A large expenditure is required on advertising and sales promotion techniques to maintain and increase current market share.

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