plaease explain or prove economically how the oligopolistoc market harms amd does good in economy and...

plaease explain or prove economically how the oligopolistoc market harms amd does good in economy and social welfare

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Answers:

Advantages of Oligopolistic Market to consumers (society)

1) PRICE STABILITY

Oligopolistic firms do not change the prices of their products often, which actually helps the individuals to be stable with their purchasing power. Consumers do not need to change their budgets, if other firms increase the price of the similar products.

2) BRAND

In general, Oligopolistic Market sells different types of branded products which makes up the trust of consumers. Individuals get a benefit of satisfaction by purchasing a trusted product.

Disadvantages of Oligopolistic Market to Consumers(Society)

1) MERGING WITH MONOPOLY FIRMS

Many cases had been seen, where, Oligopolistic Firms had an agreement with Monopolistic firms to get merged and run the market together as a single firm to maximize their profits. This lead to charging higher prices to consumer for their products. The consumers become the ultimate sufferers.

Rahul Sunny answered 1 year ago

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