What is an Oligopoly? What are its main characteristics?
Important banking qna for banking aspirants, which is helpful in banking exam.
Oligopoly is a market situation in which only one company exerts control over most of a market. It is a type of market in which few big firms’ accounts for large number of output.
Main Characteristics of Oligopoly
- Profit Maximization
- Ability to set price
- Restricted Entry
- Few Numbers of Firms
- Long run profits
- Product differentiation
- Perfect knowledge
- Non Price Competition
The retail gas market is an ideal illustration of an oligopoly because a small number of firms control a large majority of the market.