Give the nature of product sold in an oligopoly market?

Question: Give the nature of product sold in an oligopoly market?

In an oligopoly market, the nature of products sold can be either homogeneous or differentiated. Homogeneous products are essentially indistinguishable from one another, often found in markets such as steel or oil where the product's attributes are standardized. Differentiated products, on the other hand, have distinct characteristics, perceived by consumers as unique or superior, such as in the automobile or consumer electronics industries. The key aspect of an oligopoly is the interdependence between the few firms that dominate the market. This interdependence means that the actions of one firm, particularly regarding price and output, will significantly impact the decisions of the other firms within the market. As a result, these firms may engage in strategic behavior, including setting prices collectively or leading under one firm's influence to maintain market control and achieve higher returns.

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