ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Which of the following is true if competitors in an oligopoly try to beat each other with lower prices? Price war occurs, and it is not good for consumers because it ultimately limits competition.

Detailed explanation-2: -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.

Detailed explanation-3: -Answer and Explanation: Both monopoly and oligopoly competition are similar in that they portray imperfect competition and both competitive structures have price control to some extent.

Detailed explanation-4: -A monopoly is when a single company produces goods with no close substitute, while an oligopoly is when a small number of relatively large companies produce similar, but slightly different goods. In both cases, significant barriers to entry prevent other enterprises from competing.