An oligopoly displays characteristics that are different from other market structures. These characteristics are as follows: Interdependence: The firms in an oligopoly are interdependent. This is because every firm’s strategies affect the market condition for that product.
What is an oligopoly market structure?
An oligopoly is a market structure where a few large firms collude and dominate a particular market segment. Due to minimal competition, each of them influences the rest through their actions and decisions. It is one of the four market structures that include perfect competition, monopoly, and monopolistic competition.
How does an oligopoly differ from a monopoly?
An oligopoly differs from a monopoly, in which one firm dominates a market. An oligopoly is a market structure wherein a small number of producers work to restrict output or fix prices so they can achieve above-normal market returns.
