A market has the following characteristics: There is strategic pricing, output is somewhat restricted, there is interdependent decision making, and some long-run economic profits are possible. This market is:
A) a monopoly.
B) an oligopoly.
C) monopolistically competitive.
D) perfectly competitive.

Question

Quizplus · Accepted Answer

An oligopoly is characterized by strategic pricing, restricted output, interdependent decision-making, and the possibility of long-run economic profits due to limited competition among a few firms.

A Market Has the Following Characteristics: There Is Strategic Pricing