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\subsubsection{Indicators of an Oligopoly}  There are four dominant indicators to see if an oligopoly exists within a market. The first of these is what is known as concentration ratio. This is written in the form of $CR_x$ CR represents the concentration where  interdependence and collusion. In an ideal situation, from the point of view of firms operating within an oligopoly, they would know the price at which other operating firms plan to set their products. This is because firms are interdependent, and set their prices according to prices of other operating firms. This is because of the kinked demand curve, as shown below. Due to the substitution effect, if the price of a good increases, consumers will choose to buy similar goods at a lower price. Abnormal Profit. Therefore the price elasticity of demand above point PL1 will be very elastic, i.e. the responsiveness of demand to a change in price is very high. Collusion of firms for a stable of price. Barriers to entry. \subsubsection{Types of Inefficiency}