Cards (2)

  • Oligopoly describes a market structure in which the supply of goods are dominated by few firms. There are barriers to entry and may be barriers which restrict a firm from exiting the market. Knowledge may be widespread, however firms in oligopoly markets tend to possess asymmetrical knowledge.
  • Characteristics of an Oligopoly?
    * Few number of firms
    * Relatively high barriers to entry
    * Restricted knowledge
    * Many barriers to entry (not as much as a monopoly)
    * Relatively high product differentiation