ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -A monopoly occurs when a single company that produces a product or service controls the market with no close substitute. In an oligopoly, two or more companies control the market, none of which can keep the others from having significant influence.

Detailed explanation-2: -Expert Answer If one business serves more customers, the sales of the other businesses would suffer. Customers will all buy from the company with the cheaper pricing if it charges less than the competition. The other company will lower their price as payback.

Detailed explanation-3: -The actions of one oligopolist affect others in the same industry because oligopolists are so large that they have the ability to cause a change in output, sales, and prices in the industry as a whole.

Detailed explanation-4: -The economic and legal concern is that an oligopoly can block new entrants, slow innovation, and increase prices, all of which harm consumers. Firms in an oligopoly set prices, whether collectively-in a cartel-or under the leadership of one firm, rather than taking prices from the market.

Detailed explanation-5: -In an oligopoly, a few sellers supply a sizable portion of products in the market. They exert some control over price, but because their products are similar, when one company lowers prices, the others follow. In a monopoly, there is only one seller in the market.