S/E/72. Firms behaviour in Oligopoly

Oligopoly is a market situation where a few firms dominate the industry and produce either a homogenous product or differentiated product. When in an oligopoly a produce a homogenous product, it is called a perfect oligopoly. And when in an oligopoly a few firms produce a differentiated product it is called an imperfect oligopoly. In case of oligopolistic industries barriers to enter the market are quite high, which take the form of huge investment, advanced technologies, and patent rights conferred by the Government and the similar bodies. These barriers make it difficult or almost impossible for the new firms to enter the market.