Advantages of oligopoly.
- Large scale production guarantees economies of scale to firms.
- Because of high competition among firms, prices may be lower to consumers.
- The abnormal profits earned in the longrun permit research hence improvement in quality and technology development.
- Product differentiation will give consumers freedom of choice.
- High advertising provides information about the availability of goods and nature of goods to consumers.
- Oligopoly firms normally provide after sales services e.g transportation of goods.
- Stable prices in oligopoly help to control inflation situations.
- "Free" entry encourages investment as individuals are induced to enter the industry.