Oligopoly Flashcards by John Doherty | Brainscape

Q

What is an oligopoly

A

Markets dominated by a small number of firms

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Q

How do firms act in an oligopoly

A

They must act strategically and not ignore their rivals

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Q

Name three assumptions of an oligopoly

A

Sellers (firms) have market power and behave strategically
Buyers (consumers) are price takers
Significant barriers to entry even in the long run

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Q

A

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