What is an Oligopoly?
- An oligopoly is a market in which there are just a few producers.
How Do I Remember It?
- Think of oligopoly as a “few sellers” market. It’s like a playground with only a few big kids who control the games and rules, influencing how everyone else plays.
Real World Example
- The global soft drink industry is an example of an oligopoly, with a small number of major companies such as Coca-Cola and PepsiCo dominating the market. These companies have substantial market power and can influence prices and competition in the beverage market.
- Similarly, the automotive industry, where a few large manufacturers control a significant portion of the market, is another example of an oligopolistic market structure.
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