An oligopoly is the structure of the market that is characterized by the domination of a few firms or industries. Other small firms also operate in the same market, but the power concentration is associated with few firms only. Interdependency among the firms helps in planning and strategy making to introduce new ideas to increase the market activities. The competition in the market is reduced when a few of the firms dominate the market. It results in an increase in the price of commodities.
