why overthink? when you can overdrink!
Market Structure of Liquor is Oligopoly because there are only a few firms in the market. In the case of an oligopoly, the buyers are far greater than the sellers. The firms in this case either compete with another to collaborate together. They use their market influence to set the prices and in turn maximize their profits. So the consumers become the price takers. In an oligopoly, there are various barriers to entry in the market, and new firms find it difficult to establish themselves. South India dominates the alcohol market in India, with that region accounting for about 60 per cent of total IMFL sales and 45 per cent of total beer sales. Globally, most spirits are derived from grains and other raw materials may include potatoes, sugarcane and fruit spirit. The maximum permissible limit for alcohol content in spirits is 42.8 per cent v/v (volume to volume). The overall IMFL market is increasing at the rate of 9 to 10 per cent annually and growth rate of 11.9 per cent i...