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

4945 Views

See similar Economics GCSE tutors

Related Economics GCSE answers

All answers ▸

What is the Phillips curve?


What are the benefits of an increase in the National Minimum Wage?


Assess the impact of minimum wage legislation on a developing economy.


What are the main causes of unemployment in the UK? CCEA 2013 Summer paper 2


We're here to help

contact us iconContact ustelephone icon+44 (0) 203 773 6020
Facebook logoInstagram logoLinkedIn logo

MyTutor is part of the IXL family of brands:

© 2025 by IXL Learning