Oligopoly is a market structure characterized by a few large firms that dominate the market. There is competition amongst these few firms for market share. Products can be homogeneous or differentiated. Firms have imperfect knowledge of each other and the market. Barriers to entry are high due to economies of scale. Firms are mutually dependent as the actions of one firm affect others. Competition occurs not just through price but also non-price factors like advertising.

2. Those characteristics of the market that
significantly affect the behaviour &
interaction of buyers and sellers.

3. Pure (perfect)
competition
Monopolistic
competition
Oligopoly Monopoly
In decreasing order of level of competition

4. Oligopoly :
 Derived from the Greek word, “oligo’(few) “polo”(to
sell).
 Market dominated by a few large firms, i.e.;
Competition amongst the few.
• Yes• Same-
Different
• Competitors• Difficult
Ease of
entry
Competition
Control over
price
Products

5. Characteristics of Oligopoly:
 Only “few” sellers.
 Homogeneous/Differentiated products.
 Imperfect knowledge.
 High barriers to entry.
 Mutual dependence.
 Non price competition.