4. Oligopoly
The term oligopoly is derived from two Greek words: ‘oligi’ means few and ‘polein’ means to sell. Oligopoly is a market structure in which there are only a few sellers (but more than two) of the homogeneous or differentiated products. So, oligopoly lies in between monopolistic competition and monopoly.
Characteristics of Oligopoly
In oligopoly some special characteristics are found which are not present in other market struc-tures.
1. Interdependence
2. Importance of advertising and selling costs
3. Group behavior
4. Indeterminateness of demand curve facing an oligopolist
Advantage
1. High Profits
2. Simple Choices
3. Competitive Price
Disadvantage
1. Difficult To Forge A Spot
2. Less Choice
3. No Fear Of Competition