Task what is oligopoly and what are the characteristics of that?

TASK 1
1.0 What is oligopoly and what are the characteristics of that?
The Oligopoly is a competitive system that represents the dominance of a limited number of relatively big enterprises in a given industry. Firms in a dominant position have extensive market dominance and can affect costs and output levels. Oligopoly has three basic features: just a handful of large enterprises, equivalent or distinctive goods, and restrictions on entry.

Oligopolies form in industries with just a handful of powerful players, none of whom is able to force out other companies. These businesses are often costly to operate, with additional hurdles to entry that involve legislation and safeguards for intellectual property. The flight business, the oil and gas or financial sectors, and recognized popular brands in critical industries or sectors are all instances of oligopolies.

1.1 Three main characteristics of that:
The first oligopolistic feature is only a handful of major enterprises.
As stated by (Investopedia 1), oligopolies form in industries where there are a few prominent firms but none of them may successfully push out the others. This means that only a few companies monopolize this sector, and they have tremendous market power. These companies are frequently huge and powerful, which means that they have the ability to use their dominance of the market to affect costs and production levels.
The second oligopolistic feature consists of similar or different goods.

As stated by (Paperdue 2), oligopolistic enterprises' products might be either same or distinct. In some circumstances, the items produced by oligopolistic enterprises are similar, which means they are effectively a comparable product. In other circumstances, the items produced by oligopolistic enterprises vary, which means they are comparable but not equal. As corporations attempt to distinguish its goods against those of their rivals this could give rise to severe competition among them.

The final oligopolistic feature is hurdles to entry. As noted by (Investopedia1), strongholds frequently have several entry hurdles, like government and protections for intellectual property. Therefore, new enterprises may find it difficult to make it into the industry and contend with current firms. This might result in a lack of marketplace competition, which can lead to increased costs and reduced production levels.
Finally, monopolies is a system of markets in which several major enterprises dominating the business and have extensive market influence. Oligopoly has three basic features: just a few of large enterprises, equivalent or differentiated goods, and obstacle to entry.

These traits can contribute to a shortage of market concurrence, resulting in higher rates and decreased production levels. It is critical for regulators to be conscious of these traits and to take efforts to encourage rivalry in the markets.