Which of the following is a characteristic of an oligopoly? Many small firms A single seller A few large firms dominate the market Perfect information

## Step 1<br />An oligopoly is a market structure characterized by a small number of firms that dominate the market. This is in contrast to other market structures such as perfect competition, where there are many small firms, or a monopoly, where there is a single seller.<br /><br />## Step 2<br />In an oligopoly, the actions of one firm directly affect the others. This is because the market is dominated by a few large firms, and the decisions of one firm can have a significant impact on the market as a whole.<br /><br />## Step 3<br />The term "oligopoly" is derived from the Greek words "oligos", meaning few, and "polein", meaning to sell. This reflects the nature of an oligopoly, where a few firms dominate the market.