Explain which types of market inefficiencies derive from monopolies. Use examples to support your claims.

An oligopoly is a market structure in which only a few sellers produce similar or identical products. Oligopolies are price-setters and can collude to behave like a monopolist.

What are the main features of an oligopolistic market?

How do oligopolies set their prices?

Explain how you can distinguish a firm in an oligopolistic market from one in a monopolistic market. Provide examples to illustrate.