Definition
- Oligopoly
- Oligopoly is a market in which a small number of large firms have all or most of the sales in an industry.
- Not to be confused with: Monopolistic competition
- Monopolistic competition is a market in which many firms compete against each other, each selling a product that is distinctive in some way.
Test yourself
What is the difference between oligopoly and monopolistic competition?
Both have firms with some control over price, but monopolistic competition has many small firms and easy entry, oligopoly a few large ones behind high barriers.