Louisiana State University, Shreveport ECON ECON 705 The ability of a firm to raise its price while still maintaining a…
A distinguishing characteristic of oligopoly markets is that
entry barriers are sufficiently high to prevent any more than one firm existing in the industry.
the output of a single firm is extremely small relative to the output of all firms in the industry.
there are a large number of firms, each producing close substitutes for each other.
a firm’s profitability depends on its own, as well as rival firms’, decisions.
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