Business Economics - Oligopoly

Flashcards covering key vocabulary and concepts related to oligopoly markets, collusion, and competition.

Oligopoly

A market dominated by a few large firms.

Features of Oligopoly

Few firms, large firms dominate, differentiated products, barriers to entry

Collusion

Informal agreements between firms to restrict competition.

Interdependence

Where the actions of one country or large firm will have a direct effect on others.

Price War

Where one firm in the industry reduces price causing others to do the same.

Niche Market

Market for a product or service, perhaps an expensive or unusual one, that does not have many buyers, but that may make good profits for companies that sell it.

Cartel

Where a group of firms or countries join together and agree on pricing or output levels in the market.