An oligopolistic market structure is distinguished by several characteristics. What are these characteristics

Answer/Explanation:

An oligopolistic market structure is a type of market structure that has few number of sellers controlling the market share. Coca-Cola Company operates in an oligopolistic market structure.

The main characteristics of an oligopolistic market structure are:

1. Limited Sellers or Firms operate in the market, just like Coca-Cola has few competitors in the industry where they operate.

2. The products sold in such market structure by the few big firms are usually differentiated or identical products. Just like the products offered by Coca-Cola and Pepsi.

3. This market structure has no free entry, in other words, other new firms cannot easily enter into the industry to compete for market share.

4. The price policy and output policy of one company can affect that of other competitors, hence, there is some form of interdependence.

5. Examples of industries that operate an oligopoly are the breweries industry, the beverage industry, the automobile industry etc.