OLIGOPOLY

Oligopoly- is a market structure in ecomomics where a small

number of large firms or business dominate the industry. Tis can lead
to complex pricing dynamics and strategic interactiob among the
firms in industry.

Oligopoly is a market structure in which a small number of large

firms dominate an industry or market. In an olipology, these few
domimnant firms have significant market power, which means they
can influence prices and output levels.

One classic example of an oligopoly is global soft drink industry,

where a few major componies dominate the market coca-cola and
pipsi are two primary players and their brands, such as coca-cola,
pepsi and various other beverage lines, are well known world wide.
Thius two companies compete fiercely for market share and engage in
extensive marketing and advertising compaigns.

The softdrink industry illustrates key characteristics of an oligopoly:

Few dominant Firms: coca-cola and pepsico control a significant

portion of the market share for carbonated softdrinks

Interdependence: The pricing dicisions and marketing strategies of

one company often proupt responses from the other, shorcasing their
interdesfendence.

Barriers to entry: Its challenging for new companies to enter the

softdrinks market due to the substantail capital required, establised
brand loyalty, and distrubution networks.

Non- Price Competition: Firms is an oligophy often engage in non

price competition such as advertising, product differentation, and
banding to gain a competition edge.

This industry structure makes it an excellent example of

oligopoly dynamies in action.