Oligopoly is the other form of imperfect competition. In this case the scale tilts more in favour of monopoly power. In oligopoly there are a few large firms in the industry. These firms have considerable economic power. Oligopoly is a market structure found in all parts of the modern world.

When oligopolistic firms get together formally it is known as a cartel, define and explain how cartels operate and provide reasons for their m=possible failure. Use relevant examples.