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Question
Answer the following question.
What is the reason for an indeterminate demand curve under Oligopoly?
Solution
The main reasons for the indeterminate price and output under oligopoly may be summarised as follows:
- Different Behaviour patterns: In an oligopoly due to interdependence, a vast variety of behavior patterns becomes possible.
- Indeterminate Demand Curve: Another cause of indeterminateness of price and output in an oligopoly is the indeterminate demand curve.
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