Which cannot be a characteristic of an oligopolistic industry?
A) Differentiated products
B) A large number of consumers
C) Significant barriers to entry
D) A perfectly elastic firm demand curve

Question

Quizplus · Accepted Answer

An oligopolistic industry is characterized by a small number of large firms who are interdependent in their pricing and output decisions. Differentiated products and significant barriers to entry are common features of oligopolies. However, a perfectly elastic firm demand curve, where a firm can sell any quantity at the market price, is a characteristic of a perfectly competitive market rather than an oligopoly. A firm operating in an oligopoly market typically faces a downward-sloping demand curve, indicating that it must decrease its price to sell more units.

Which Cannot Be a Characteristic of an Oligopolistic Industry