An oligopoly is a market structure with a small number of firms, none of which can keep the others from having significant influence. The concentration ratio measures the market share of the largest firms.
The computer technology sector shows us the best example of oligopoly. If we dig under computer operating softwares, two prominent names come up: Apple and Windows. These two players have managed the majority of the market share.
The biggest reason why oligopolies exist is collaboration. Firms see more economic benefits in collaborating on a specific price than in trying to compete with their competitors. By controlling prices, oligopolies are able to raise their barriers to entry.
An oligopoly is a market structure in which only a few sellers offer. similar or identical products. A market structure in which many firms sell products that are similar but not identical. Monopolistic Competition.
An oligopoly is a market characterized by a small number of firms who realize they are interdependent in their pricing and output policies. The number of firms is small enough to give each firm some market power.Jan 3, 2002
A monopoly and an oligopoly are market structures that exist when there is imperfect competition. A monopoly is when a single company produces goods with no close substitute, while an oligopoly is when a small number of relatively large companies produce similar, but slightly different goods.
One characteristic of an oligopoly market structure is: firms in the industry have some degree of market power. many firms, differentiated products, and free entry. price and quantity just as a monopoly does.