In an oligopolistic market, a few large firms dominate the industry, resulting in a concentrated market structure. The main features of oligopoly include: Few Large Firms: The market is dominated by a small number of large firms, which exert significant influence over pricing and market dynamics. Interdependence: Actions taken by one firm directly impact the others due to the market's limited number of competitors. Therefore, each firm must consider the likely responses of its rivals when making decisions. Barriers to Entry: Entry into the market is typically difficult due to high startup costs, economies of scale, or control over essential resources, further consolidating the market power of existing firms. Non-Price Competition: Firms often engage in non-price competition, such as advertising, product differentiation, and innovation, to gain a competitive edge without necessarily lowering prices. Oligopolies set their prices through various strategies, including: Price Leadership: One dominant firm in the industry sets the price, and other firms follow suit to maintain market stability and avoid price wars. Collusion: Firms may collude to fix prices collectively, maximizing their joint profits. However, collusion is illegal in many jurisdictions and can lead to antitrust investigations and penalties. Strategic Pricing: Firms strategically adjust prices based on factors like market demand, production costs, and competitors' actions, aiming to maximize profits