Which of the following conditions represent the defining structural characteristics of an oligopoly? 1. A very large number of buyers and sellers. 2. Exceptionally high barriers to entry for new competing firms. 3. High mutual interdependence regarding pricing among the existing firms. Select the correct answer using the codes given below:

Correct answer: 2 and 3 only

Explanation: ✅ Correct Answer: C) 2 and 3 only 📚 Explanation: An oligopoly is a specific market structure completely dominated by a very small number of massive firms, contrasting sharply with the "large number of sellers" found in perfect competition. Due to the massive capital requirements and complex regulatory hurdles, oligopolies inherently possess exceptionally high barriers to entry. Because the market is heavily concentrated, these few remaining firms are highly interdependent, meaning one firm's aggressive pricing or output decisions directly dictate the reactive strategies of its rivals.