Oligopoly refers to a market structure in which a few large firms dominate the industry. These firms have significant market power, which enables them to influence prices and control the supply of goods or services. In an oligopoly, there are typically high barriers to entry, which means that it is difficult for new firms to enter the market and compete with the existing firms. The behavior of firms in an oligopoly is often interdependent, meaning that the actions of one firm can have a significant impact on the others. As a result, oligopolies are often characterized by strategic behavior, such as collusion or price-fixing, to maintain their dominance in the market.