Q2Managerial Economics & Financial Accounting
Question
2 marks
Define oligopoly.
Answer
Oligopoly is a market structure with a few large sellers, high barriers to entry, and mutually interdependent decision-making.
Oligopoly is a market structure characterized by a small number of large, dominant sellers offering either identical or differentiated products.
Its key feature is mutual interdependence, meaning the pricing and output decisions of one firm directly and significantly affect its competitors.