One way in which oligopoly differs from monopolistic competition is that an oligopoly operates in an industry that
A)makes no profits.
B)incurs losses.
C)has fewer sellers.
D)has more sellers.
E)incurs higher costs.

Question

Quizplus · Accepted Answer

Oligopoly is characterized by a small number of large firms dominating the market, while monopolistic competition has a larger number of smaller firms with relatively less market power. Therefore, the industry in an oligopoly has fewer sellers compared to monopolistic competition.

One Way in Which Oligopoly Differs from Monopolistic Competition Is