Difference between Collusive and Non-Collusive Oligopoly Market ? (4m)

Collusive Oligopoly

Non-collusive Oligopoly

Under this form of oligopoly, firms might decide to collude together and not to compete with each other.

In this form of oligopoly, firms do not collude and instead compete with each other.

Under collusive oligopoly, the firms would behave as a single monopoly and aim at maximising their collective profits rather than their individual profits.

Under non-collusive oligopoly, each firm aims at maximising its own profits and decides how much quantity to produce assuming that the other firms would not change their quantity supplied.

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collusive oligopoly if the firms coperate with each other in determining price and output policy
non- collusive : if the firms compete with each others

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Nice explanation in a 4M question ;) 

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  Collusive oligopoly

Non collusive oligopoly

 

1.  It is the form of market in which there are few big Firms in the market and all decides to avoid competition through a formal agreement.

2.  All the firms collude to form a cartel and fix for themselves output quotas and market price.

 

3.  Members of the cartel accepts the price as determined by all the firms.

 

1.   It is the form of market In which there are few firms in the market and each firm pursues its price and output policy independent of the rival firms.

 

2.  Each firm tries to increase its market share through competition.

 

3.  Competition is preferred to competition as a means of profit maximization because there are only a few firms in the market, there is a cut-throat competition.

 

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  Collusive oligopoly

Non collusive oligopoly

 

1.  It is the form of market in which there are few big Firms in the market and all decides to avoid competition through a formal agreement.

2.  All the firms collude to form a cartel and fix for themselves output quotas and market price.

 

3.  Members of the cartel accepts the price as determined by all the firms.

 

1.   It is the form of market In which there are few firms in the market and each firm pursues its price and output policy independent of the rival firms.

 

2.  Each firm tries to increase its market share through competition.

 

3.  Competition is preferred to competition as a means of profit maximization because there are only a few firms in the market, there is a cut-throat competition.

 

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  Collusive oligopoly

Non collusive oligopoly

 

1.  It is the form of market in which there are few big Firms in the market and all decides to avoid competition through a formal agreement.

2.  All the firms collude to form a cartel and fix for themselves output quotas and market price.

 

3.  Members of the cartel accepts the price as determined by all the firms.

 

1.   It is the form of market In which there are few firms in the market and each firm pursues its price and output policy independent of the rival firms.

 

2.  Each firm tries to increase its market share through competition.

 

3.  Competition is preferred to competition as a means of profit maximization because there are only a few firms in the market, there is a cut-throat competition.

 

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Thanks a lot  friends :) :) Thumbs up ;)

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thanxx  fatal error 

Collusive oligopoly

Non collusive oligopoly

 

1. It is the form of market in which there are few big Firms in the market and all decides to avoid competition through a formal agreement.

2. All the firms collude to form a cartel and fix for themselves output quotas and market price.

 

3. Members of the cartel accepts the price as determined by all the firms.

1. It is the form of market In which there are few firms in the market and each firm pursues its price and output policy independent of the rival firms.

 

2. Each firm tries to increase its market share through competition.

 

3. Competition is preferred to competition as a means of profit maximization because there are only a few firms in the market, there is a cut-throat competition.

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:P :P :P
is it enough for 4 marks :P

Collusive oligopoly

Non collusive oligopoly

 

1. It is the form of market in which there are few big Firms in the market and all decides to avoid competition through a formal agreement.

2. All the firms collude to form a cartel and fix for themselves output quotas and market price.

 

3. Members of the cartel accepts the price as determined by all the firms.

1. It is the form of market In which there are few firms in the market and each firm pursues its price and output policy independent of the rival firms.

 

2. Each firm tries to increase its market share through competition.

 

3. Competition is preferred to competition as a means of profit maximization because there are only a few firms in the market, there is a cut-throat competition.

 


 

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