Oligopoly Flashcards
0
Q
The degree of market concentration is…
A
Very high
A large percentage of the market is taken up by leading firms
1
Q
Defintion of an Oligopoly…
A
A market structure dominated by a few large firms
2
Q
Firms within an Oligopoly produce…
A
Branded products, highly reliant on marketing- important feature of non price competition
3
Q
Barriers to entry
A
Are quite high due to strong branding
4
Q
Game theory..
A
Another important characteristic of an oligopolistic market- the interdependence between firms
•firms take into account other firms reactions when making pricing and investment decisions
5
Q
Price ____ is likely to occur in an oligopoly
A
Rigity
6
Q
Oligopolies also are low ….
A
Contestability
