State three characteristics of oligopoly market structure

Here are three characteristics of an oligopoly market structure:

1. Few Dominant Firms: An oligopoly is characterized by a small number of large firms that dominate the market. These firms hold a significant market share, and their actions have a substantial impact on the industry.
2. Interdependence: The firms in an oligopoly are highly interdependent. The decisions of one firm regarding pricing, output, or advertising can significantly affect the profits and strategies of the other firms, leading to strategic interactions.
3. Barriers to Entry: There are significant barriers that make it difficult for new firms to enter the market. These barriers can include high startup costs, economies of scale enjoyed by existing firms, patents, or government regulations, which help the dominant firms maintain their position.