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                                                                What do you understand by oligopoly market? Explain any three of its features.  

Answer:

Oligopoly is a form of market in which there are only few big sellers of a commodity and large number of buyers. e.g. there are only few car producers in the Indian auto market such as Toyata, Ford, GM, Audi, BWN and Volkswagen.                                                                            Oligopoly market exhibits the features given below:                                         (i) A Few Firms A few firms, large in size dominate the market for a commodity. Each firm commands significant share of the market which can impact market price of the product.               (ii) Large Number of Buyers There are large number of buyers of a commodity. The number that no individual buyer can impact market price of the product.                                (iii) Entry Barriers There are various barriers to the entry of new firms. These barriers are almost similar to those under monopoly. Entry of the new firm is extremely difficult, but not impossible.