Question

Define the term oligopoly market.

Answer 1

1. An oligopoly is a market structure in which a few firms sell a similar or closely differentiated product, resulting in strong competition among them.
2. It is a market structure typified by a small number of sellers and a big number of buyers.
3. Each firm produces a significant part of the overall output in an oligopoly.
4. When determining the price of its products, each company considers the reaction of its competitors.
5. In an oligopoly, different enterprises are interdependent.