Pricing and output determination under an oligopoly is more complicated than pricing and output determinations in other industries.The primary reason for the complication is the:

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In an oligopoly, there are only a few firms that dominate the market. As a result, each firm's decisions regarding pricing and output have a significant impact on the other firms' profitability. This mutual interdependence makes it challenging for firms to make pricing and output decisions without considering the potential reactions of their competitors. It is, therefore, the primary reason that pricing and output determination under an oligopoly is more complicated than other industries. The other options such as brand loyalty, powerful effect of advertising, variability of concentration ratios, and small number of firms are just some of the factors that further complicate the decision-making process under oligopoly.

Pricing and Output Determination Under an Oligopoly Is More Complicated