Meaning and Features of Oligopoly Notes
Meaning and Features of Oligopoly Oligopoly is also known as competition among the few. The term oligopoly is derived from two Greek words: · ‘oligo’ means a few · ‘poly’ means seller When the sellers are a few, each produces a considerable fraction of the total output of the industry and can have a noticeable effect on market conditions. Thus, Oligopoly is a market situation where the number of sellers is so small that every seller has a perceptible effect on others and influences the market. Examples of oligopoly are cement, cold drink, automobiles, steel industry, etc. When oligopoly firms sell a homogeneous product, then it is called Pure or homogeneous Oligopoly. For example, industries selling cement, steel, petrol, cooking gas, etc are industries characterized by Pure or homogeneous Oligopoly. On the other hand, when products of the few sellers or firms are differentiated but close substitutes of e...