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Market Equilibrium — Economics STD 11 Commerce — Question

CBSE BoardEnglish MediumSTD 11 CommerceEconomicsMarket Equilibrium3 Marks
Question
Firms under oligopoly are involved in non-price competition. Why?
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Answer

Oligopoly is a form of market in which there are only a few firms operating in the market and each firm is very large in size. This leads to huge interdependence among the firms. They generally avoid price competition as a price-cut by one firm may lead to price war, leading to loss of revenue for both firms.

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