Answer :
The characteristic most closely associated with oligopoly is a easy entry into the industry is a few large producers
Interdependence of the various businesses in decision-making is the primary characteristic of oligopoly.
All of the businesses in an oligopolistic industry are aware of this fact. If a small number of large companies make up an industry and one of them launches a large-scale advertising campaign or creates a new product model that quickly wins over the market, it will undoubtedly elicit countermoves from rival companies in the industry.
As a result, various businesses are highly interdependent.
Under oligopoly a major policy change on the part of a firm is likely to have immediate effects on other firms in the industry. Therefore, the rival firms remain all the time vigilant about the moves of the firm which takes initiative and makes policy changes. Thus, advertising is a powerful instrument in the hands of an oligopolist. A firm under oligopoly can start an aggressive advertising campaign with the intention of capturing a large part of the market. Other firms in the industry will obviously resist its defensive advertising.
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