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

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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 -

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