A collusive oligopoly is an industry comprising a few producers (oligopoly), in which producers agree among themselves as to pricing of output and allocation of output markets.
A concentration ratio measures the proportion of total industry sales controlled by the largest firms within the industry, typically the top four or eight firms.
A duopoly is a form of oligopoly where only two firms dominate the entire market. This market structure can lead to unique competitive behaviors and economic outcomes. The two dominant firms may collaborate or compete aggressively, impacting market prices, output, and overall industry dynamics.
A free market is an economic system characterized by minimal or no government intervention, where prices are determined by supply and demand dynamics. It's an environment where transactions between buyers and sellers are governed primarily by mutual consent without external pressures from monopolies, cartels, or collusive oligopolies.
A market structure characterized by a few firms producing products that are virtually indistinguishable from one another. Examples include the petroleum industry and network television.
An oligopoly is a market structure characterized by a small number of large firms dominating the market. This structure lies between perfect competition and monopoly and encompasses industries like automobiles, airlines, and telecommunications.
In an oligopolistic industry, a price leader is the firm whose output pricing decisions are most likely to be matched by other firms. This role sets the industry standard for pricing and significantly influences market dynamics, leading to reduced competition.
