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Advantages And Disadvantages Of Oligopoly

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Oligopoly The definition of the oligopoly is that it is a market which is controlled by a small amount of sellers who are attend to be aware of themselves and other seller in this market. They are free to make their own decisions together. There are many characteristics of the oligopoly such as following: 1) There is a small number of sellers who control all the sales in this industry. 2) There are barriers to enter this market which let the sellers know how to determine the capital to compete in this industry. 3) There is a strong interdependence between the sellers. The firms are large relative to the market that they are working in. if one oligopoly firm change the price, all the other firm will be affected. For example, if any firm reduce the price the firms must reduce the price in order not to lose the profit. 4) Oligopoly firms always try to take the advantage of the opportunities and advertise on a national scale. They advertise at the popular occasions like the final championships. + The advantages of oligopoly: 1) The firms that are involved in this market have the big chance to make that highest profits since there is little competition only. The services and goods that are controlled by this market are highly needed by most of the members of the society. 2) It is easier for the consumers to compare between the products of the firms and choose the best for them since they are a few firms in this market. In others markets it may be difficult to compare the prices

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