What type of market has significant control by a few firms and leads to higher risks for new entrants?

In an oligopoly, a market structure is characterized by a small number of firms that hold significant market power. This concentration allows these firms to influence prices and control market dynamics to a greater extent than in more competitive markets.

Due to the limited number of firms, each firm's decisions regarding pricing, output, and marketing strategies can have substantial effects on the others. This interdependence can lead to collusion or price-fixing among the firms, making it challenging for new entrants to compete effectively. The existing firms may have established brand loyalty, economies of scale, and significant resources that can deter new competitors.

Furthermore, the barriers to entry in an oligopoly can be quite high because new entrants may struggle to achieve the same level of production efficiency, access distribution channels, or manage the marketing costs that established firms handle. This leads to a higher risk for new entrants, as they may find it difficult to capture market share in a market dominated by a few strong players.

In contrast, other market structures like monopoly, duopoly, and perfect competition exhibit different characteristics. While a monopoly means a single firm controls the entire market, and duopoly involves only two firms, perfect competition allows many players, leading to lower risks for new entrants. Oligopoly is