Oligopoly

Elucidate the features existing under Oligopolistic market structure

Introduction Oligopoly is one of the most common forms of market structure found in the real world. It lies between monopoly and perfect competition. In an oligopolistic market, a few large firms dominate the industry, and each firm’s decisions affect the others. This leads to interdependence in pricing and output decisions. In this answer, we […]

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The Paul Sweezy’s kinked demand curve model shows price rigidity under Oligopoly. Explain how.

Introduction Oligopoly is a market structure in which a few large firms dominate the market. One of the key characteristics of oligopoly is price rigidity — prices tend to remain stable even when costs or demand change. Economist Paul Sweezy attempted to explain this phenomenon using the Kinked Demand Curve Model. This model is based

The Paul Sweezy’s kinked demand curve model shows price rigidity under Oligopoly. Explain how. Read More »

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