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An Oligopoly is when a certain market only has a few producers.

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Delta Airlines is one of a few airlines in the United States. Delta is part of an Oligopoly of airlines in the U.S., providing commercial flights across the globe. They are one of few who do this, as it is difficult to get into the airline business for a myriad of reasons.

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Characteristics according to the Textbook

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Characteristics according to the Textbook

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1. It has few sellers.
2. Firms produce or sell either identical or slightly differentiated products.
3. The barriers to entry are significant, which means that entry into the market is difficult.

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Advantages and Disadvantages of Oligopolies

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Advantages and Disadvantages of Oligopolies

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Advantages:
1. It makes choosing between what producer of a product you want easier. There are limited major spaghetti sauce makers, but it makes deciding which one to pick slightly easier.
2. There is still competition, so producers still have incentive to produce quality products. To continue the spaghetti sauce makers point, a lot of their goods are indeed quality.

Disadvantages:
1. There are limited producers, so the options are more limited. There are very few airlines to choose from, so booking flights is not exactly very easy.
2. There's really not much stopping producers from jacking up prices due to limited options in the market. Needless to say, flights on airlines are pretty expensive.

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