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Unformatted text preview: (c) type of the product sold in the market (d) barriers to new firms entering the market (e) existence of nonprice competition in the market. What is the market structure of automobile industry Oligopoly What is oligopoly? Oligopolies refer to a market structure where an industry is dominated by a small number of large firms An important characteristic of an oligopolistic market structure is the interdependence of firms in the industry. The interdependence, actual or perceived, arises from the small number of firms in the industry Oligopolistic competition can give rise to a wide range of different outcomes. In some situations, the firms may employ restrictive trade practices (collusion, market sharing etc.) to raise prices and restrict production. Where there is a formal agreement for such collusion, this is known as a cartel . Market structure of automobile industry...
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- Spring '11
- Oligopoly, Automobile, Renault, automobile industry, Opel