Which organization operates as an oligopoly and why?

Answer 1

An example of an organization operating as an oligopoly is the commercial airline industry, where a few major airlines dominate the market. This occurs due to high barriers to entry, such as significant capital investments, regulatory requirements, and limited access to airport slots. The major players often engage in price-fixing and coordinated marketing strategies, which can lead to reduced competition and higher prices for consumers. The interdependence among these firms also influences their pricing and operational decisions.