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Question:
(a) Differentiate between the characteristics of a perfectly competitive market and those of a monopoly market structure.
(b) To what extent is a monopoly market superior to that of a perfectly competitive one?
(c) Describe how an oligopolist can decide on the price of its products under the different pricing strategies.
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Why might an oligopoly be reluctant to change its price? When some large firms have high total market share and are non-collusive, there is a strong element of interdependency.
Internal and external economies of scale: Internal economies of scale are the advantages or benefits that the firm enjoys as it expands its size or increases its scale of ope
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