An oligopoly means few sellers in the market.

It is a market structure where control over an industry lies in the hands of a small number of large sellers who own a dominant share of the market.

In an oligopoly, there are typically only a few firms that have significant influence over the market.

These firms can impact prices and make strategic decisions that can affect the entire industry.

Characteristics of an oligopoly include:

1. Limited number of sellers: Oligopolistic markets have a small number of sellers, often referred to as oligopolists. These sellers dominate the market and have a significant market share.
2. Homogenous or differentiated products: Oligopolistic markets can have either homogenous products, where the products offered by different sellers are similar, or differentiated products, where each seller offers a unique product or brand.
3. Mutual interdependence: Firms in an oligopoly are mutually interdependent, meaning that the actions of one firm are expected to have an impact on the other firms in the market. This interdependence leads to strategic decision-making and the consideration of competitors' actions.
4. Collusion and competition: Oligopolistic firms may engage in collusion, which is an agreement among firms to restrict output or fix prices to maximize profits. However, competition among oligopolists can also exist, leading to strategic behaviour such as price wars or non-price competition.