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Honda is part of an oligopoly because it produces cars, and there are only a few car producers in the US

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Take 5 minutes to revise five key points about the important market structure of oligopoly!

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What oligopolies are and how they operate in markets. Includes overview of collusion in oligopolistic markets. Useful for revision or learning the basics of the subject. Pause where you need to and study the information more closely or make notes on the content. Like and Subscribe!

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1) The risk of colluding.
2) The risk of cartels.
3) There is intense competition.
4) It is hard to compete with other businesses when starting out.
5) The need to sacrifice profits for rival balance.

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Part of an Oligopoly.

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1) Only a few sellers.
2) Cartels don't last long because there are incentives to cheat.
3) They have better advertising.
4) They have higher/ better discounts which draws people in.

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1) Only a few sellers of the product.
2) They sell identical or similar products.
3) There are a lot of barriers for getting in and out of the market.
4) The risk of colluding; conspiring to fix prices.