What is one of the main characteristics of an oligopoly?

In the context of oligopoly, high barriers to entry are indeed one of its defining characteristics. This means that new firms face significant obstacles when trying to enter the market. These barriers can take various forms, such as high startup costs, strong brand loyalty among existing firms, access to distribution channels, patents, or government regulations. Because of these barriers, the number of firms in an oligopoly is typically limited, which allows existing firms to maintain a degree of market power and influence over pricing and output levels. This characteristic differentiates oligopolistic markets from those that are perfectly competitive, where firms can enter and exit freely without substantial impediments. The presence of high barriers to entry thus contributes to the stability and pricing strategies seen in oligopolistic industries.