Coursework.Info - Inspiration in an Instant

On the left is an image preview of every page of this document, and below are the first 150 words with formatting removed:

"In oligopoly markets price and output decisions are indeterminate." Explain and discuss. Introduction An oligopoly is a market with only a few sellers, each offering a product similar or identical to the others. If the product is homogenous1, there is a pure oligopoly. If the product is differentiated, there is a differentiated oligopoly. Since there are only a few sellers of a product, the actions of each seller affect the others. That is, the firms are usually mutually interdependent. The key point to make regarding markets price and output decisions are that there is no single theory of oligopoly (equivalent to that of perfect competition or monopoly) that exists because the behaviour of oligopolistic firms are determined by the strategic reaction and behaviour of their rivals and these reactions will differ according to the market situation. Therefore the markets price and output decisions are indeterminate2. Under conditions of oligopoly, the industry is likely...

Get instant access

• Instant, unlimited access to our documents in full
• Swap your work for free access, or pay £4.99
• To see the full version of this document and 147,309 others

OR

Receive email updates for this category

• Simply tell us your email address and receive a weekly Study Help Email for FREE
• Receive 3 FREE essay views with each email
• Get all the latest essays from Coursework.Info & discussion from TheStudentRoom.co.uk