a) Characteristics

a) characteristics of oligopoly: high barriers to entry and exit, high concentration ratio, interdependence of firms, product differentiation


characteristics

  • many buyers and few sellers

  • firms are price makers

    • differentiated products

  • high barriers to entry/exit

    • branding

    • high start-up costs

    • sunk cost fallacy

  • high concentration ratio

  • firm interdependence

    • price wars

    • output change effects on price