when an oligopoly exists, how many producers dominate the market?
Brainly has millions of high quality answers, all of them carefully moderated by our most trusted community members, but certified answers are the finest of the finest. The oligopoly is known to have a one producer dominating the market. This results in a few suppliers/sellers in the market, and thus can cause a high increase in the price of the products that are being sold in its respective community.
Determining Whether an Oligopoly Exists. An oligopoly is de ned, not by the size of the rms, but by their. relative market shares. Essentially, if relatively few rms control most of the market sales, then an oligopoly exists. One commonly used measure of market concentration is the. Her ndahl-Hirschman Index (HHI), which is de ned as: HHI =. XN.