What is the main distinguishing feature of oligopoly from other market structure?

Answer 1

The main distinguishing feature of oligopoly is the presence of a small number of firms that dominate the market, leading to interdependent decision-making. Unlike perfect competition, where many firms operate independently, or monopoly, where one firm controls the entire market, oligopolistic firms must consider the actions and reactions of their competitors when making pricing and production decisions. This often results in strategies such as price collusion, product differentiation, and non-price competition.