oligopoly behaviour

Question 1

competition oligopoly, what factors promoting, performance eval

Answer 1

-price or non-price competition
-factors promoting competitive oligopoly: 1)large no. of firms
2) new market entry possible
3) one firm with significant cost advnatges
4) homogenous goods
5) saturated market (price wars)

-performance evaluation: pros and cons of competitive outcomes

Question 2

collusiveoligopoly, what factors promoting, performance eval

Answer 2

-overt or tacit (understood without being openly expressed)
factos:
1) small no. of firms
2) similar costs
3) high barriers
4) ineffective competition policy
5) consumer loyalty
6) consumer inertia: cheating

pros and cons of monopoly outcomes