The features mentioned below are related to which of the following a. Price rigidity b. Small number of large firms c. Attitude of firms often against each other d. Lack of uniformity?

Option 3 : Oligopoly

The correct answer is option 3, i.e. Oligopoly.

• The features of Oligopoly:
  • Price rigidity
  • A small number of large firms
  • The attitude of firms often against each other
  • Lack of uniformity
  • The interdependence of every firm on the other firms and their reactions to a situation.
  • Sometimes aggressive or sometimes defensive marketing methods.
• Oligopoly - It refers to a situation where a few producers who specialize in the production of identical goods or differentiated goods competing with one another come together. It is of two types:
  • Pure or perfect oligopoly
  • Imperfect or differentiated oligopoly
• Perfect competition - A kind of market where a large number of buyers and sellers are present, each one buying and selling a homogeneous product, and no buyer or seller has control over the price of the product.
• Monopolistic Competition - It is a structure where a large number of small sellers sell differentiated products that are not perfect substitutes for each other but are close to each other.
• Monopoly - It is a market form in which a single producer controls the supply of a commodity in the market.