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An oligopoly is a market structure in which a small number of firms control the market. This means that each firm has a significant influence on the market price and output. Oligopolies are common in many industries, including the automotive industry, the airline industry, and the pharmaceutical industry.

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There Are Several Characteristics That Define An Oligopoly:

A small number of firms: There are only a few firms in the market, and each stable has a significant share of the market.

High barriers to entry: It is problematic for new firms to enter the marketplace, due to high start-up costs or other barriers.

Interdependence: The actions of one firm in the oligopoly have a significant impact on the other firms in the market.

Collusion: Firms in an oligopoly may collude, or cooperate, to fix prices or output

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