• Oligopoly

    Oligopoly market signifies the market where the number of suppliers is limited but still there is some competition in the market.

    The basic characteristics of Oligopoly are

    • A small number of suppliers in the market, but no monopoly by any specific supplier.
    • The suppliers are dependent to each other for any kind of price increase or decision making. Decision taken by one supplier affects the profit and business of other supplier.
    • Products are almost similar with no significant differences.
    • There are very high barriers to entry in the same product segment with huge capital investment.

    Auto sector is a perfect example of Oligopoly.

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