Which of the following describes an oligopoly?

An oligopoly is characterized by a market structure where a limited number of firms dominate the market, often leading to interdependent decision-making among these firms. In an oligopolistic market, the actions of one firm can significantly influence the actions and market share of the others, which can result in behaviors such as price collusion or strategic rivalry. This limited number of firms creates a situation where barriers to entry may exist, making it difficult for new competitors to enter the market.

Oligopolies are also recognized for various pricing strategies and product differentiation, which can further affect consumer choice and market dynamics. The presence of a few dominant firms means that competition in an oligopoly is different than in a monopoly, where there is only one firm, or in perfect competition, where many firms exist and none have significant market influence.