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Because the market sector features a few large and dominant competitors, the Big Tech marketplace best illustrates a condition where conditions of "Oligopoly" prevail.
What is an Oligopoly?
A market structure known as an oligopoly occurs when two or more companies hold a large amount of market power. They have the power to control supply and prices when acting as a group. When the top 4 companies dominate 50% of a market, it is generally referred to as an oligopoly.
Some key features of Oligopoly are-
- Few firms with large market share
- Oligopolistic firms maintain their position in the market by a number of high barriers to entry.
- Interdependence - An oligopolistic business will make decisions depending on how they anticipate rivals will respond.
- Each firm has little market power on its own - each firm has little market power, because other firms are quick to take advantage.
- Higher prices than in perfect competition - due to their combined market dominance, oligopolies frequently maintain higher pricing in order to generate greater profits.
- More efficient - Oligopolistic businesses profit from high market shares. They also profit from economies of scale, which allows for cheaper production.
Learn more about market economy, here brainly.com/question/25265598
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