Answer to Question #70014 in Macroeconomics for Manmeet Singh
Oligopoly occurs when a small quantity of suppliers control a significant share of the supply of products. In this case, each supplier must take into account the reactions of other suppliers to changes in market activity. If the goods have a trademark and are not perfect substitutes (and the difference between goods can be either real (according to technical characteristics, design, manufacturing quality, provided services) and imaginary (brand name, packaging, advertising), then products are considered differentiated, and the industry is called a differentiated oligopoly. Examples can be markets for cars, computers, televisions, cigarettes, toothpaste, soft drinks, beer.
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