savio13
Savio Cabral
Entry is possible but difficult: A new firm can enter the oligopoly market. In reality, however, it is highly difficult to enter due to financial, technological and other barriers to the entry. Whenever the profits are high, new firms do enter the market.
Interdependence: Due to few firms in the market, an individual firm is neither free nor independent to take its own decisions about the output and price. Any decision resulting in a change in the price or output attracts reaction from the rival firms. There may be different reactions from different firms.
Interdependence: Due to few firms in the market, an individual firm is neither free nor independent to take its own decisions about the output and price. Any decision resulting in a change in the price or output attracts reaction from the rival firms. There may be different reactions from different firms.