The situation where a market has only a small number of sellers producing similar products is known as an . (Insert a single word.)

The situation where a market has only a small number of sellers producing similar products is known as an oligopoly. An oligopoly is characterized by the presence of a few firms that have significant market power and influence over prices and output levels. Firms in an oligopoly often produce products that are similar but differentiated enough to create brand loyalty among consumers. This market structure can lead to various competitive strategies such as price wars, collusion, or even the establishment of barriers to entry for other firms. The interdependence of the firms also means that the actions of one seller can directly affect the others, leading to complex strategic planning and competitive behavior.