An oligopoly describes a market in which:

a) a market with a small number of buyers.

b) a market with a single large producer.

c) a market with a large number of producers and consumers.

d) a market where a few large producers dominate.

• An oligopoly describes a market in which d) a market where a few large producers dominate.

An oligopoly competition is the one where there are a few producers or suppliers in a given industry. In such competition, entry barriers are usually very high as the capital investment requirement is high. Moreover, there is also very little differentiation among the products offered by competitors in such industry. An example of oligopoly competition is the soft drinks industry, where there are only two dominant players, namely, Coca-cola and Pepsi.