Answer :
Final answer:
Oligopoly in a market involves a few dominant firms with significant market power collaborating and competing to control prices and output.
Explanation:
Oligopoly is a market structure where a small number of powerful firms dominate the market, limiting competition. These firms have significant market power and often collaborate to control prices and output, resembling a mini-monopoly.
In an oligopoly, firms' decisions are interdependent, meaning one firm's actions directly impact the others. Collusion among oligopolists can lead to higher profits, but it is often challenging to maintain due to individual incentives to cheat on agreements.
Barriers to entry and the intense competition between firms characterize oligopolies, influencing pricing, quantities, and advertising strategies to maximize profits and maintain market dominance.
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