Question

Varieties of oligopoly An oligopolistic market structure is distinguished by several characteristics, one of which is either homogeneous or differentiated products. What are some other characteristics of this market structure

Answer 1

Answer:

Market control by a few large firms

Difficult entry

Mutual interdependence

Explanation:

In the case of oligopoly as we know that there are very little large firms and each kind of firm generates the important portion of the total output. So each market have the market control

Also the main reason behind the barrier with regard to new firm entered is the barrier for the few firms. The reasons like patents, large capital needed are some reasons that makes it difficult for entering

In addition to this, they are mutual interdependent. This implies that the one firm action would impact the other firm action and according to this, the price and the level of output would be determined

Hence, the above represent the answer