Ogechi ventures into a new business with few competitors and requires a huge investment.Soon after entering the business,one of Ogechi's competitors introduces a price cut that forces Ogechi to reduce the prices of her products as well.In this scenario,Ogechi has ventured into _____.

Question

Quizplus · Accepted Answer

Ogechi's situation describes an oligopoly, characterized by a market with few competitors and high barriers to entry, such as the need for a huge investment. The price cut by a competitor affecting Ogechi's pricing strategy is typical of oligopolistic markets, where firms are interdependent and changes by one firm can affect others.

Ogechi Ventures into a New Business with Few Competitors and Requires