Features of oligopoly:
1. Few large firms: Very few big firms own the major control of the whole market by producing major portion of the market demand.
2. Interdependence among firms: The price and quality decisions of a particular firm are dependent on the price and quality decisions of the rival firms.
3. Group behaviour: The firms under oligopoly realise the importance of mutual co-operation.
4. Advertisement cost: The oligopolist could raise sales either by advertising or improving the quality of the product.
5. Nature of product: Perfect oligopoly means homogeneous products and imperfect oligopoly deals with heterogeneous products.
6. Price rigidity: It implies that prices ate difficult to be changed. The oligopolistic firms do not change their prices due to the fear of rival’s reaction.
