Th3.4: Characteristics of Oligopoly

Question 1

What is oligpoly?

Answer 1

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

Question 2

What are the four characteristics of oligopoly?

Answer 2

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 -