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Difference between collusive and non-collusive oligopoly?
If in an oligopoly market, the firms compete with each other, it is called a non-collusive, or non-cooperative oligopoly. If the firm cooperate with each other in determining price or output or both, it is called collusive oligopoly, or cooperative oligopoly. Collusive oligopoly exists when the firms in an Oligopolistic market charge the same prices for their products, in affect acting as a monopoly but dividing any profits that they make. Non collusive oligopoly exists when the firms in an oligopoly do not collude and so have to be very aware of the reactions of other firms when making price decisions.
What is the definition of collusive oligopoly?
Collusive oligopoly is an industry that only contains few producers (oligopoly), in which producers agree among one another as to pricing of output and allocation of output markets among themselves. Cartel, such as OPEC, are collusive oligopolies.
What are the types of oligopoly?
Oligopoly is a market from where large numbers of buyers contact few sellers for the purpose of buying and selling things. The different types are a pure oligopoly, a differentiated oligopoly, a collusive oligopoly, and a non-collusive oligopoly.
What is the difference between a collusive and a non collusive monopoly?
A collusive monopoly limits open competition through the use of deception or misleading statements, or by defrauding others of their legal rights, or obtains an objective forbidden by law typically by defrauding or gaining an unfair market advantage. Collusion is an agreement among firms or individuals to divide a market, set prices, limit production or limit opportunities, which can involve "wage fixing, kickbacks, or misrepresenting the independence of the relationship between the colluding parties" A non collusive monopoly would not use the fore mentioned practices, and would rely more on differentiating their product.
Non-price competition tends to be a consequence of which market structure?
Oligopoly
Why the demand curve in an oligopoly is kinked?
because oligopolistic firms are unlikely to benefit from a reduction in prices, it is something known as game theory, each firm is attempting to get the edge over their competitor, but not with prices. This is because if one firm reduces their prices, it is highly likely that the others will do the same and in the end all parties finish with the same market share as when the price war erupted; but because they reduced prices, profit is lost, with no benefit for the firm
What forms can non-price competition take in monopolistic competition and oligopoly?
they take place in those areas
What are the feature of oligopoly?
Features of Oligopoly.The important features of oligopoly are given as follow :1. Few Sellers2. Homogeneous or differentiated products3. Entry is possible but difficult4. Interdependence5. Uncertainty6. Indeterminateness7. Price rigidity8. Non price competition9. Tendency to form cartel10. Close substitutes
Is apatite a silicate or nonsilicate?
It is a mixture of potassium salt [K+ and ?-] with an impure form of potassium carbonate. So it is a non-silicate, as it contains no silica.
What has the author Jolian P McHardy written?
Jolian P. McHardy has written: 'Non-linear demand and the price-cost margin approach to the estimation of the social costs of oligopoly'
What non metal is used to remove oxygen from metal ores?
Carbon, usually in impure form such as coal or coke, is often used to remove oxygen from metal ores.
How do economist determine whether a market is an oligopoly?
A market is an oligopoly when a small number of sellers dominate a market or industry. Economists use a set of criteria to determine whether a market form is an oligopoly. These criteria include profit maximization conditions, ability to set price, high barriers to market entry, a small number of firms, long-run abnormal profits, product differentiation, perfect knowledge of cost and demand functions, interdependence on other firms' marketing strategies, and non-price competition.
