Oligopoly

An oligopoly refers to an economic structure in which only a small number of suppliers exist. There is no hard and fast rule that determines whether suppliers operate in an oligopoly; market-share concentration tools can be helpful in this regard. Oligopolies are price makers and benefit from high barriers to entry. There is limited latitude for independent action in an oligopoly. Actions by one firm will invariably lead to actions by other firms in the oligopoly.