What are the characteristics of an oligopoly?

An oligopoly is defined as a market structure where the market is dominated by a few large firms. Within the oligopoly, there is mutal interdependence, where firms base their prices and marketing strategies based upon the likely response of other firms in the oligopoly. There is also non-price competition, where advertising and other means are used to distinguish a firm's goods from another to try and sell their goods with the increased competition which exists in an olipopoly. There are also strong barriers to entry where it is difficult for new firms to enter the market.

RL
Answered by Raul L. Economics tutor

4759 Views

See similar Economics GCSE tutors

Related Economics GCSE answers

All answers ▸

What is opportunity cost?


Explain the effect of a subsidy on equilibrium price and quantity in a demand and supply model.


Explain what is meant by ‘price elasticity of demand’


Why does a govt focus on economic growth as a primary objective and should it always pursue this objective. Give reasons for your answer.


We're here to help

contact us iconContact usWhatsapp logoMessage us on Whatsapptelephone icon+44 (0) 203 773 6020
Facebook logoInstagram logoLinkedIn logo

© MyTutorWeb Ltd 2013–2025

Terms & Conditions|Privacy Policy
Cookie Preferences