Market Structure: Oligopoly

A. Under oligopoly, there is a high level of reliance between the organizations. Cost and yield arrangement of one firm significantly affects the cost and yield approach of the adversary firms in the market. When one firm brings down its value, the adversary firms may likewise bring down the cost. Also, when one firm raises the value, the adversary firms may not do it. Likewise, while making a move on cost or yield, a firm should consider the conceivable response of the adversary firms in the market.

B. Many individuals need to contend that the watched developments of fuel costs are prove that service stations are conniving with each other, at any rate implicitly. This, in any case, overlooks the way that there is for the most part an extensive number of contending service stations, particularly in medium and bigger size urban areas. It is more probable the case that the critical measure of rivalry among service stations is what is compelling the costs to move together. In that capacity, it would be genuinely troublesome, if certainly feasible, to effectively bring charges of inferred intrigue against these organizations.