What Does Oligopoly Mean?


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Katie Harry Profile
Katie Harry answered
Oligopoly is a market condition where there are a limited number of seller who dominate the market. These sellers if work together can benefit. They differentiate on non-price factors amongst each other like advertisement, market penetration etc.
The decision of any one of them though to go against the 'collision' or 'working together' can lead to a eventual loss of not only the company itself but other competitors as well.
This can be explained in terms of the prices of cellular networks, if they continue decreasing it there would be no end so they focus on other things like better coverage
hope this explains oligopoly to you!
Anonymous Profile
Anonymous answered
Modern business unit have a tendency to merge with a view to operate on a large scale. The development of large scale operation have ultimately generated market situation characterized by the predominance of a few large firms. Such a market structure which limits competition among very few is described as oligopoly.

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