Which of the following is a distinguishing characteristic of oligopoly?
A) No one firm's actions directly affect the actions of the other firms.
B) Firms are free to enter and exit the industry.
C) A small number of firms compete.
D) Natural barriers cannot prevent the entry of new firms.

Question

Quizplus · Accepted Answer

Oligopoly is characterized by a market structure in which a small number of firms dominate the industry, leading to a situation where the actions of one firm can significantly impact the decisions and strategies of the other firms within the same market.

Which of the Following Is a Distinguishing Characteristic of Oligopoly