Answer to Question #151081 in Microeconomics for Himanshu bansal

Question

Characteristics of oligopoly market ?

Answer 1

Characteristics of Oligopoly Market

An oligopoly is described as an industry characterized by a small number of firms, in which all the firms enjoy influence. As such, in this type of market structure, no firm can keep the other firms from having a substantial inspiration in the market. Key characteristics of oligopoly market include; interdependence whereby each firm can make its decision. Advertising of products is also a key in oligopoly market. As such, a hostile competition characterizes this type of market. Moreover, when it comes to pricing of products every firm has to keep to its price to avoid rivals hence no uniqueness pattern of pricing. Also, under oligopoly market, there are few firms, and this is to prevent companies from entering the market; hence oligopolistic can earn huge profits.