Oligopoly
Oligopolies are dominated by large firms. Each of these firms copy eachother. There 2 kinds of Oligopolies, being a pure oligopoly and a differencial oligopoly. The pure oligopolies have firms that produce the same product. Differencial Oligopolies have firms producing different products from one another. Once again, this market structure is defined by these characteristics:
- There are few firms
- There are similar products
- There are huge barriers upon entering
- They have some price control
- They try to set the price which is collusion and it's illegal
- They have price leadership