Control over price and an oligopoly leveraging it can be a problem. Explain this statement using the price of insulin as an example.

A characteristic of the oligopolistic market is that fewer firms are selling almost the same commodities. Therefore, these firms exert a little control on prices, but any decisions made by one entity depends on the decision made by the other entities in the structure. Therefore, when one entity in the structure raises its prices, the others may respond by lowering to gain control of the markets. Firms cannot take complete advantage of the system as any decisions they get to will be counteracted by the other entities. Firms can, however, decide to work together and set a sort of a monopoly, having complete price control.

Therefore, with few sellers supplying a sizeable number of products in the market, and due to the similarities in the products they sell, a company lowering its prices will have the other companies lowering their prices too; this attribute makes it hard for firms in oligopolies not to take the full advantage of oligopolies in control of prices. For example, if firm A reduces its insulin prices, firms B and C will reduce their prices to counteract A's decision and make sales.