The market in the form of monopolistic competition model, those that fall between the markets alone, free competition and full of pure monopoly, are many. One of the important forms prevailing in monopolistic competition market is oligopoly, oligopoly which is narrower types of monopolistic competition. The oligopoly market contain a small number of producers may not exceed two in some cases, and called duopoly market. The oligopoly market problems are clearly distinct from the problems of free markets, competition and full competition and monopolistic market of pure monopoly vary.
In a duopoly, whether the product is categorized or variety or similar, the product of the individual have to take into account the indirect consequences of the decision to change the price or production, any decision taken by the product or the first bidder would be the reaction directly from the second product, and will reflect his decision the case of the first viewer. As the curves of product revenue, in the cases of full competition, monopoly and full cost is completely independent of the actions of the viewer in the case of goods not classified. The determination of the case and all of the production volume and cost of the oligopoly does not know the answer to one or a specific solution, but is subject to many assumptions dictated by the decisions of the two parties, and the potential reactions every time one of them comes to a decision to take the size of production. The rule the price of one (with the similarity of goods, equal to the cost of production) in the case of duopoly can be the result of an actual or implied agreement between the parties, or as a result of the decision taken by each of them in isolation from his opponent. Obviously, it would not be in the interest of competitors and monopolists to define a price differs from the price offered by a monopolist of the individual, which is the price that achieves maximum profit possible, and then the combined profits of the two will be at its peak, otherwise one will kill the other mechanism to raise the prices and reduction and without an agreement. This is a natural result of the price war under certain conditions. In the case of an oligopoly in a market in which classified or a variety of products exposed the monopolistic agreement may be more difficult than in the case of goods not classified or diverse, and reach agreement on specific pricing policy it will be difficult too, since each of their goods Foundation and specifications incurred, they also have customers who are keen to produce them, and will not be a decision to raise the price by one of the exhibitors cause of entering a price war between exhibitors or producers (as in the first case), due to the particular form or another different goods, so the market share evenly among the exhibitors as in the first case unlikely to impose in this case. But if the producers decided to get out of these hypotheses and to engage in a price war, the consequences will …show more content…
Do we have an oligopoly? How the consumer gets the best price in the market? And when the government intervened to curb price rises and is it successful policy has
In a duopoly, whether the product is categorized or variety or similar, the product of the individual have to take into account the indirect consequences of the decision to change the price or production, any decision taken by the product or the first bidder would be the reaction directly from the second product, and will reflect his decision the case of the first viewer. As the curves of product revenue, in the cases of full competition, monopoly and full cost is completely independent of the actions of the viewer in the case of goods not classified. The determination of the case and all of the production volume and cost of the oligopoly does not know the answer to one or a specific solution, but is subject to many assumptions dictated by the decisions of the two parties, and the potential reactions every time one of them comes to a decision to take the size of production. The rule the price of one (with the similarity of goods, equal to the cost of production) in the case of duopoly can be the result of an actual or implied agreement between the parties, or as a result of the decision taken by each of them in isolation from his opponent. Obviously, it would not be in the interest of competitors and monopolists to define a price differs from the price offered by a monopolist of the individual, which is the price that achieves maximum profit possible, and then the combined profits of the two will be at its peak, otherwise one will kill the other mechanism to raise the prices and reduction and without an agreement. This is a natural result of the price war under certain conditions. In the case of an oligopoly in a market in which classified or a variety of products exposed the monopolistic agreement may be more difficult than in the case of goods not classified or diverse, and reach agreement on specific pricing policy it will be difficult too, since each of their goods Foundation and specifications incurred, they also have customers who are keen to produce them, and will not be a decision to raise the price by one of the exhibitors cause of entering a price war between exhibitors or producers (as in the first case), due to the particular form or another different goods, so the market share evenly among the exhibitors as in the first case unlikely to impose in this case. But if the producers decided to get out of these hypotheses and to engage in a price war, the consequences will …show more content…
Do we have an oligopoly? How the consumer gets the best price in the market? And when the government intervened to curb price rises and is it successful policy has