In Listen In week six, we learn about what an oligopoly is. In your own words, please explain what an oligopoly is. Additionally, please provide an example of when a oligopoly may occur. Hint: there is a great example to help you in your textbook; however, you cannot use the example from the textbook in your response to this discussion board. Please think of your own example. Your initial discussion board post is due by Wednesday, Feb. 19th at 11:59 PM EST. This post must be at least 250 words minimum. You must also respond to at least two of your classmates' posts by Friday, Feb. 21 st at \( 11: 59 \) PM EST. Each response must be at least 50 words in length. The use of generative \( A l \) is not permitted on this assignment or the response to peers. Using generative \( A l \) on the discussion is consider academic dishonesty. Rubrics

An oligopoly is a market structure characterized by a small number of firms that dominate the market. In an oligopoly, these firms have significant market power, which allows them to influence prices and output levels. Unlike in perfect competition, where many firms compete and have little control over prices, or in a monopoly, where a single firm controls the entire market, oligopolistic firms are interdependent. This means that the actions of one firm can directly affect the others, leading to strategic behavior in pricing, production, and marketing. One of the key features of an oligopoly is the potential for collusion, where firms may work together to set prices or limit production to maximize their profits. However, collusion is often illegal and can lead to regulatory scrutiny. Oligopolies can also lead to price rigidity, where prices remain stable over time because firms are hesitant to change them for fear of losing market share or provoking a price war. An example of an oligopoly can be found in the airline industry. In many countries, a few major airlines dominate the market, such as American Airlines, Delta Air Lines, and United Airlines in the United States. These airlines have significant control over pricing and routes, and their decisions can greatly impact the overall market. For instance, if one airline decides to lower its fares on a particular route, the others may quickly follow suit to remain competitive. This interdependence among the airlines exemplifies the characteristics of an oligopoly, where a small number of firms hold substantial market power and influence over the industry. In conclusion, oligopolies play a crucial role in various industries, shaping market dynamics and consumer choices. Understanding this market structure helps in analyzing how firms operate and compete in a landscape where a few players hold significant influence.