An increase in the market share of one oligopolist will not affect the market share of the other firms in the industry.

Question

Quizplus · Accepted Answer

In an oligopoly market structure, firms often compete on the basis of price, advertising, and product differentiation. If one oligopolist gains market share, it may put pressure on the other firms to adjust their strategies in order to maintain their own market shares. This can include price adjustments or increased advertising efforts. Thus, an increase in the market share of one oligopolist can potentially affect the market share of the other firms in the industry.

An Increase in the Market Share of One Oligopolist Will