ECONOMICS
TECHNOLOGY
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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They own many different “brands”
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They are major corporations with stockholders
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They control over 75% of the market
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They have products that are different, but are marketed the same way
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Detailed explanation-1: -An oligopoly is defined as a market structure with few firms and barriers to entry. Oligopoly = A market structure with few firms and barriers to entry. There is often a high level of competition between firms, as each firm makes decisions on prices, quantities, and advertising to maximize profits.
Detailed explanation-2: -A good example of an Oligopoly is the cold drinks industry. In India, there are a handful of firms who manufacture cold drinks. These firms sell homogeneous as well as differentiated products in the market.
Detailed explanation-3: -There are two firms in the market. They produce a homogeneous product. They produce at a constant marginal cost. Firms choose prices. and. simultaneously. Firms outputs are perfect substitutes. Sales are split evenly if.
Detailed explanation-4: -Firms are interdependent. Product differentiation. High barriers to entry. Uncertainty.