ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -In an oligopoly, there are only a few firms in the market. While there is no clarity about the number of firms, 3-5 dominant firms are considered the norm. So in the case of an oligopoly, the buyers are far greater than the sellers.

Detailed explanation-2: -Oligopsony, a market in which many sellers can be present but meet only a few buyers. Monopoly, in which there is only one provider of a product or service. Natural monopoly, a monopoly in which economies of scale cause efficiency to increase continuously with the size of the firm.

Detailed explanation-3: -This typically happens in a market for inputs where numerous suppliers are competing to sell their product to a small number of (often large and powerful) buyers. It contrasts with an oligopoly, where there are many buyers but few sellers.

Detailed explanation-4: -Oligopoly means few sellers. In an oligopolistic market, each seller supplies a large portion of all the products sold in the marketplace. In addition, because the cost of starting a business in an oligopolistic industry is usually high, the number of firms entering it is low.

Detailed explanation-5: -There is no precise number of companies that qualifies a market as an oligopoly. But as a rough guideline, the number of sellers must exceed two and be less than about five.