Yr 2 Oligopoly Flashcards
1
Q
What art thou oligopoly?
A
Its an imperfectly competitive industry
there’s a high degree of concentration in the market
top 5 firms have >60%
Firms in an oligopoly are best defined by their conduct
Such as price rigidity or non price competition
2
Q
What did the last point mean?
A
Price rigidity is where firms in the market look over one another and react to what each firm does.
Non price competition is where they dont compete on price, rather they compete on tthings that tthey offer
2
Q
What did the last point mean?
A
Price rigidity is where firms in the market look over one another and react to what each firm does.
Nonprice competition is where they don’t compete on price, rather they compete on things that they offer, like accessories, vouchers, service…
