Examples of oligopoly in our economic system today include Steel industry, Aluminum, Film, Television, Cell phone and Gas among others (Perloff 2011).
The probability of raising prices above the competitive levels demand a detailed understanding of the oligopolistic markets and the influential trends involved. Normally, the possibilities prevalence depends on the desire of the involved firms for success. In this piece, the mention of the possibilities would imply the probability of occurrence of raised prices above the competitive levels. In this situation, when such an issue is mentioned, many would tend to begin asking themselves on whether the probabilities are activity prompt or automatic.
Again the choices by the firms in the market that attribute to alteration of the prices beyond the competitive levels have consequences. Moreover, the essential point to understand in this scenario is the essence of prices, their thresholds and the effect of status in the oligopolistic market (Mansfield 1982).
Oligopolistic markets have variant features relating to the prices such as the limited number of firms selling the same commodities. If there are a number of firms dealing on similar products then it implies that there must be a significant extent of competition for which the price is a critical factor. Altering the price in a particular firm would impact the entire market since one of the market forces is altered. ...