There are many economists that cringe at the words oligopoly

There are many economists that cringe at the words: oligopoly and free market together. To them, it is an oxymoron, unjust and plain down \'wrong\'. Why do you believe that is the case? Isn\'t an oligopoly market structure \'ok\' for a free market/ capitalist economy?

Solution

The belief of many economist that cringe at the word oligopoly and free market together. They consider them as oxymoron, unjust and plain down \'wrong\'. The reason is that both have huge market where firms are more for similar products. The price is highly competitive in nature because it may lead to loss. The oligopoly market is other wise ok for a free market capitalist economy. The reason is that it has a huge market where the price is kept in amrginal so that there is no loss on a long term.