What is an oligopoly and what effect did it have on business?

An oligopoly is a market structure characterized by a small number of firms that dominate an industry, leading to limited competition. This concentration allows these firms to influence prices and market conditions, often resulting in higher prices for consumers and reduced innovation. Firms in an oligopoly may engage in collusion or tacit agreements to maintain market control, which can stifle competition and lead to inefficiencies in the market. Overall, the presence of an oligopoly can significantly impact business strategies, pricing, and consumer choices.