What is an oligopoly?
Oligopoly is an economic market structure wherein a small number of firms dominate the industry and account for the majority of the market share. It occurs when few firms have some degree of control over supply and prices, and there are significant barriers to entry for other firms trying to enter the industry.
Features of Oligopoly Market
Some key features of oligopoly include:
Oligopoly vs Monopoly
Monopolies and oligopolies are two economic arrangements that have a lot in common, but also have some distinctive differences. Monopolies are defined as when a single company or individual holds complete control over an entire market. Oligopolies, on the other hand, occur when a small number of firms dominate the market to keep competition low and prices high. Also, in an oligopoly, there is limited room for potential competition. The key difference between these two models is that while monopolies limit consumer options to one provider, oligopolies allow customers to choose between a few firms in the same industry.
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