What is an oligopoly? Give an example. What will be an ideal response

QUESTION

What is an oligopoly? Give an example.

What will be an ideal response?

ANSWER

In an oligopoly, there are few sellers in the marketplace, which is difficult to enter. Products may be either homogenous or differentiated, depending on the industry represented. Each seller in the marketplace reacts to the actions of the other sellers. Good examples of oligopolies are the automobile, airline, and steel industries.