Which of the following is one of the defining characteristics of an oligopoly?
A)One firm's behavior can affect the profits earned by other firms.
B)All firms act independently to create a perfectly competitive outcome.
C)All firms act independently to create a monopoly outcome.
D)None of these are true.

Question

Quizplus · Accepted Answer

In an oligopoly, a few firms dominate the market, and the actions of any one firm can significantly impact the profits of the other firms. This interdependence is a key characteristic of oligopolies, distinguishing them from other market structures.

Which of the Following Is One of the Defining Characteristics