Question

Explain the meaning of the following features of the Oligopoly Market :
(a) Non-Price Competition
(b) Few Sellers

Answer 1

(a) Non-Price Competition: Oligopoly firms tend to ignore price competition. They stress on the non-price competition. They adopt a policy of aggressive non-price competition. The products of the firms in oligopoly markets have the same price.
(b) Few Sellers: There exist a few, but large dominant firms in an oligopoly market. These firms account for the majority of market supply, thereby control the market price and quantity of the output.