ECONOMICS
COMPETITION AND MARKET STRUCTURES
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Many sellers with identical barriers to entry
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Many sellers, each with a clearly differentiated product, and no barriers to entry
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A few competing sellers with similar products and high barriers to entry
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A few competing sellers of identical products and no barriers to entry
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No competition among sellers and high barriers to entry
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Detailed explanation-1: -Oligopoly markets are markets dominated by a small number of suppliers. They can be found in all countries and across a broad range of sectors. Some oligopoly markets are competitive, while others are significantly less so, or can at least appear that way.
Detailed explanation-2: -In an oligopoly, there must be some barriers to entry to enable firms to gain a significant market share. These barriers to entry may include brand loyalty or economies of scale. However, barriers to entry are less than monopoly. Differentiated products.
Detailed explanation-3: -Duopoly, a special case of an oligopoly with two firms. Monopsony, when there is only one buyer in a market. Oligopsony, a market in which many sellers can be present but meet only a few buyers.
Detailed explanation-4: -There is no certainty in how firms will compete in Oligopoly; it depends upon the objectives of the firms, the contestability of the market and the nature of the product. Some oligopolies compete on price; others compete on the quality of the product.