Monday, November 17

Characteristics of oligopoly and Entry Barr

Characteristics
  • Small number of interdependent competitors in a market with significant economies of scale
  • high barriers to entry
  • Similar or differentiated products
  • “follow the leader”
  • very elastic or flat demand curve make firm tempting to cheat

Entry barriers:

  • Patents
  • control over a resource
  • economies of scale
  • government license/legal barrier
  • Resources control

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