The key to understanding differentiated oligopoly is to understand the concept of an oligopoly. An oligopoly consists of a small number of firms competing in the same industry where they have some market power and influence over price. In other words, each firm has enough control that it can use its size for competitive advantage. The distinguishing feature about differentiated oligopolies is that these firms are not only similar in terms of pricing but also in terms of product quality, customer service, or marketing strategy. In such a market, there is no one seller that dominates the industry. One example of this type of oligopoly can be found in the automobile industry. As shown below, General Motors Corporation (GM), Ford Motor Company (FMC) and Chrysler LLC are all competitors within an oligopoly with differentiated products. In-fact, these three companies produce over 90% of the cars sold in America today. Mention: FMC only produces automobiles for sale domestically while GM manufactures both domestic and international vehicles but still has 55% share on American car sales due to its huge production volume as well as wider network in terms of retail store locations across US states compared to other two firms; meanwhile Toyota Motor Corp., Honda Motor Co., Nissan

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