distinguish between co-operative and non co-operative oligopoly .
give the meaning of collusive oligopoly . explain any two feature of oligopoly.
Dear Student,
COLLUIVE OLIGOPOLY : If firms in oligopolist market cooperate with each other while makin decisions regarding price or output or both in production, then it is refeered as a cooperative oligopoly. Cooperative oligopoly is also known as collusive oligopoly.
NON COLLUSIVE OLIGOPOLY: If firm is an oligopoly market compete with each other and donot cooperate with each other, it is called non collusive oligopoly or non cooperative oligopoly.
FEATURES OF OLIGOPOLY:
(i) Nature of product: If the firms produce homogenous product, it becomes pure oligopoly. The firms producing differentiate product it is called impure oligopoly.
(ii) Interdependence among firms: In oligopoly market, each firm treats the other as its rival. It is for this reason that each firm while determing price of its product,takes into account the reaction of other firms to its own action.
Regards,
Payal Goyal
COLLUIVE OLIGOPOLY : If firms in oligopolist market cooperate with each other while makin decisions regarding price or output or both in production, then it is refeered as a cooperative oligopoly. Cooperative oligopoly is also known as collusive oligopoly.
NON COLLUSIVE OLIGOPOLY: If firm is an oligopoly market compete with each other and donot cooperate with each other, it is called non collusive oligopoly or non cooperative oligopoly.
FEATURES OF OLIGOPOLY:
(i) Nature of product: If the firms produce homogenous product, it becomes pure oligopoly. The firms producing differentiate product it is called impure oligopoly.
(ii) Interdependence among firms: In oligopoly market, each firm treats the other as its rival. It is for this reason that each firm while determing price of its product,takes into account the reaction of other firms to its own action.
Regards,
Payal Goyal