Definition

A situation in a market where a small number of companies control most of the supply, so that the decisions of one company can influence prices and competition.

Example

In an oligopoly, a few large firms dominate the market, making it difficult for new competitors to enter.

Conversation

Have you heard about the new oligopoly forming in the tech industry?

Yeah, it’s interesting how just a few companies can dominate the market.

Right? It makes it tough for smaller businesses to compete.

Exactly! I wonder how it will affect prices for consumers.

Synonyms & Antonyms

Root Explanation

Oligopoly → It is formed from "oligo-" (from Greek "oligos", meaning few) and "poly" (from Greek "polein", meaning to sell). The word describes a market structure where a few firms dominate the market and sell similar products.

Memory Tip

Think of 'few' ('oligo-') sellers in a market ('poly') — that's why oligopoly refers to a market controlled by a small number of sellers.

Visually Confused Words