Which of the following characteristics is most commonly associated with an oligopoly market structure?

An oligopoly is a market structure where a few large companies dominate the market, meaning there are only a small number of sellers. This can lead to companies closely watching each other’s actions, such as prices and production levels, because each company's decisions can significantly impact the others. For example, in the automobile industry, a few major companies like Ford and Toyota control a large share of the market, so if one decides to lower prices, the others might feel pressured to do the same to stay competitive. This interdependence often results in similar pricing strategies and marketing efforts among the companies. Therefore, the most common characteristic of an oligopoly is the limited number of firms that influence market outcomes collectively.