GK
INDIAN ECONOMY
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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a few sellers, one buyer
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a few sellers, many buyers
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a few sellers, a few buyers
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many sellers, a few buyers
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Detailed explanation-1: -Few sellers, many buyers is a basic characteristic of ‘Oligopoly’. Oligopoly is a situation where there are only a few sellers who sell different or identical products and dominate the market since they have control over the price of the product.
Detailed explanation-2: -The correct option is b. An oligopolistic market structure has various characteristics, including high restrictions on entry and exit, high competition, and a few large firms dominating the market.
Detailed explanation-3: -A monopoly is a market with only one producer, a duopoly has two firms, and an oligopoly consists of two or more firms. There is no precise upper limit to the number of firms in an oligopoly, but the number must be low enough that the actions of one firm significantly influence the others.
Detailed explanation-4: -An oligopoly is a situation where a few firms sell most or all of the goods in a market. Oligopolists earn their highest profits if they can band together as a cartel and act like a monopolist by reducing output and raising price.