What term describes a market structure where only a few businesses offer a product or service?

The term that describes a market structure where only a few businesses offer a product or service is oligopoly. In an oligopolistic market, a small number of firms dominate the market, leading to a situation where each one must consider the actions and reactions of the others when making decisions. This can result in firms either collaborating (forming cartels) or competing against one another, influencing pricing and availability of the products or services offered.

Oligopoly often leads to limited competition because the few firms control a significant share of the market. This is distinct from a monopoly, where a single firm controls the entire market, and from perfect competition, where numerous businesses offer identical products leading to no single firm having market control. Market fragmentation refers to a scenario where many businesses operate in the same market but do not dominate it, resulting in a more diverse landscape with no few firms controlling the market.