Explain the implications price, quality and quantity of products in oligopoly market
Dear Student,
The implication of price, quality andd quatity of products in an oligopolistic market are:
1.PRICE: Under the oligopolistic market, firms are few but are large and dominating.Therefore, a firm cannot fix price of the commodity without considering the price of the rival firms.The prices do not move freely as per the changes in demand of the product.The pricing strategy is dependent on the pricing strategies of the competitive firms.
2.QUALITY: The quality and output decisions are dependent on the dominating firms, all the decisions in an oligopolistic market is dependent on the other firms prevailing in the market.
3.QUANTITY: The amount of goods to be produced by a firm or simply the output decisions of the firm are based on the output decisions of the other rival firms,the market is hugely controlled by the dominating firms, a firm cannot take it's output decisions without taking into consideration the probable reaction of the rival firms
Regards,
The implication of price, quality andd quatity of products in an oligopolistic market are:
1.PRICE: Under the oligopolistic market, firms are few but are large and dominating.Therefore, a firm cannot fix price of the commodity without considering the price of the rival firms.The prices do not move freely as per the changes in demand of the product.The pricing strategy is dependent on the pricing strategies of the competitive firms.
2.QUALITY: The quality and output decisions are dependent on the dominating firms, all the decisions in an oligopolistic market is dependent on the other firms prevailing in the market.
3.QUANTITY: The amount of goods to be produced by a firm or simply the output decisions of the firm are based on the output decisions of the other rival firms,the market is hugely controlled by the dominating firms, a firm cannot take it's output decisions without taking into consideration the probable reaction of the rival firms
Regards,