What are the characteristics of an oligopoly?
An oligopoly arises when a few large firms, relative to the overall market, produce all or most of the output in the industry. There are several basic characteristics of oligopolies:
a . Only a few firms dominate the industry.
b. The product being sold may be homogeneous or differentiated.
c. There may be significant barriers to entry.
d. Decision-making is often mutually interdependent.
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