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concentration-ratio
LOW CONCENTRATION
0% to 50%. This category ranges from perfect competition to
oligopoly.
MEDIUM CONCENTRATION
50% to 80%. An industry in this range is likely an oligopoly.
HIGH CONCENTRATION
80% to 100%. This category ranges from oligopoly to monopoly.
Collusive and non-collusive oligopoly
Many a times, firms under oligopoly collude in order to coordinate
prices, limit competition between them and to reduce uncertainties.
This is known as collusive oligopoly. This results in firms acting like
a monopoly and thus making abnormal profits.
Collusive Oligopoly
Watch a Video - Collusion