Th3.4: Characteristics of Oligopoly Flashcards
1
Q
What is oligpoly?
A
where there are a few firms that dominate the market and have the majority of market share, although this does not mean there won’t be other firms in the market
2
Q
What are the four characteristics of oligopoly?
A
products are generally differentiated
high concentration ratio - supply in the industry must be concentrated in the hands of a
relatively small number of firms
firms must be independent
are barriers to entry -