Question

Write down the meaning and characteristics of oligopoly.

Answer 1

Answer:

An oligopoly is an industry which is dominated by a few firms. In this market, there are a few firms which sell homogeneous or differentiated products. Also, as there are few sellers in the market, every seller influences the behavior of the other firms and other firms influence it .

Answer 2

Oligopoly means a market with less number of buyers and sellers and also competition is less.

The characteristic of oligopoly is firms are interdependent and the price of the products is high.

What are the features of oligopoly?

• In this market, all the firms are interdependent and work together
• The firm under this market is controlled by the leading firms
• There are fewer firms are present in this market
• The firms do not easily enter and exit in this market
• The prices of the product are very high in this market due to less competition