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Considering the types of products and the relative market conditions it can be remarked that SQUARE Pharmaceutical Limited Bangladesh is operating its business in monopolistic competition. An oligopoly is a market form in which a market or industry is dominated by a small number of sellers oligopolists.
The word is derived from the Greek for few sellers. Because there are few participants in this type of market, each oligopolist is aware of the actions of the others.
The decisions of one firm influence, and are influenced by the decisions of other firms. Strategic planning by oligopolists always involves taking into account the likely responses of the other market participants.
This causes oligopolistic markets and industries to be at the highest risk for collusion. Oligopoly is a common market form. As a quantitative description of oligopoly, the four-firm concentration ratio is often utilized. This measure expresses the market share of the four largest firms in an industry as a percentage.
Oligopolistic competition can give rise to a wide range of different outcomes. In some situations, the firms may collude to raise prices and restrict production in the same way as a monopoly. Where there is a formal agreement for such collusion, this is known as a cartel.
Firms often collude in an attempt to stabilize unstable markets, so as to reduce the risks inherent in these markets for investment and product development. There are legal restrictions on such collusion in most countries.
There does not have to be a formal agreement for collusion to take place although for the act to be illegal there must be a real communication between companies — for example, in some industries, there may be an acknowledged market leader which informally sets prices to which other producers respond, known as price leadership.
In other situations, competition between sellers in an oligopoly can be fierce, with relatively low prices and high production. This could lead to an efficient outcome approaching perfect competition.
In particular, the level of deadweight loss is hard to measure.
The study of product differentiation indicates oligopolies might also create excessive levels of differentiation in order to stifle competition.
In an oligopoly, firms operate under imperfect competition and a kinked demand curve which reflects inelasticity below market price and elasticity above market price, the product or service firms offer, are differentiated and barriers to entry are strong.
Following from the fierce price competitiveness created by this sticky-upward demand curve, firms utilize non-price competition in order to accrue greater revenue and market share.
Below the kink, demand is relatively inelastic because all other firms will introduce a similar price cut, eventually leading to a price war.
Therefore, the best option for the oligopolist is to produce at point E which is the equilibrium point and, incidentally, the kink point. A year later the establishment of the second unit followed. In Bangladesh there are some other companies working in this sector.
Following names are the most prominent: Monopolies are characterized by a lack of economic competition for the good or service that they provide and a lack of viable substitute goods. Likewise, a monopoly should be distinguished from a cartel a form of oligopolyin which several providers act together to coordinate services, prices or sale of goods.
A government-granted monopoly or legal monopoly is sanctioned by the state, often to provide an incentive to invest in a risky venture. The government may also reserve the venture for itself, thus forming a government monopoly. A monopoly is not merely the state of having control over a product; it also means that there is no real alternative to the monopolized product.Port Manteaux churns out silly new words when you feed it an idea or two.
Enter a word (or two) above and you'll get back a bunch of portmanteaux created by jamming together words that are conceptually related to your inputs..
For example, enter "giraffe" and you'll get back words like "gazellephant" and "gorilldebeest". AgriBiotech Project: SQUARE has setup a plant tissue culture laboratory to develop agricultural/agro processing sector in the country and is committed to bring improved quality planting materials and year round production through AgriBiotech.
Above data is graphically shown in the subsequent graph: Considering the types of products and the relative market conditions it can be remarked that SQUARE Pharmaceutical Limited Bangladesh is operating its business in monopolistic competition.
Port Manteaux churns out silly new words when you feed it an idea or two. Enter a word (or two) above and you'll get back a bunch of portmanteaux created by jamming together words that are conceptually related to your inputs..
For example, enter "giraffe" and you'll get .
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