1)Why is it difficult to break into an oligopolistic market? 2)Discuss the various factors which a firm In an oligopolistic market Is likely to take Into account when deciding upon the price to change for its product

a)It is difficult to break into an oligopolistic market due to its characteristics. There are few firms in the oligopolistic market but they play a dominating role. The market share of every firm is huge and requires heavy investment to have that level of market share. It is not easy for new entrepreneurs to enter the oligopolistic market. One more reason due to which it is difficult to break into an oligopolistic market is a barrier to entry. Barriers like patent, high initial cost, and government restrictions are some of the reasons because of which it is difficult to break into an oligopolistic market.

b. Various factors which a firm in an oligopolistic market is likely to take into account when deciding upon the prices to change for its product are:

1. The cost of production is the main factor that the firm takes into account while deciding upon the prices to charge for its product.

2. The prices charged by competitors also play a crucial role in determining the prices of the firm.

3. The dominant firm plays a critical role in the oligopolistic market. In an oligopolistic market, the other firms follow the dominant firms and change the prices accordingly.