Oligopoly

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of one firm with respect to output, price, or quality will cause a reaction on the side of other firms.
Many times an leads to price leadership between many firms. A price leadership is the practice in many oligopolistic industries in which the largest firm publishes its price list ahead of its competitors. Then these competitors feel the need to match those announced prices so they lower their prices. This is also termed a parallel pricing.
Oligopolies tend to be broken down into one of two distinguished groups. These groups are either a homogeneous or differentiated . Homogeneous oligopolies have a standardized product and which include industrial, with petroleum serving as the standardized example, and also services such as banking. Differentiated oligopolies, where the products have some differences, are found in consumer goods industries, such as cars, biscuits, beer and electrical appliances.
There is however another in which the manner of the corporation or ...

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telecommunications and entertainment industry.
Microsoft, the biggest Software Company in the world, has been through a lot of debate of whether they have a monopoly and have the ability to establish an industry. Microsoft Corporation has the ability to control software prices in the market. They have in a way an in this industry. If Microsoft decides to lower their prices on goods then the other sellers in their industry will also decide to lower their price on goods. Microsoft knows that they have control over the other companies and uses that to their advantage.
Over the past few months there has been talk about dismantling Microsoft Corporation. The U.S. Justice Department ...

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