A characteristic of an oligopoly is:
A) mutual interdependence in pricing decisions.
B) independent pricing decisions.
C) lack of control over prices.
D) none of these.

Question

Quizplus · Accepted Answer

Mutual interdependence in pricing decisions is a key characteristic of an oligopoly. In an oligopoly market structure, a few large firms dominate the market, and their pricing decisions can directly impact the prices and profits of their competitors. As a result, firms in an oligopoly typically engage in strategic behavior and carefully consider their pricing decisions based on the actions of their competitors.

A Characteristic of an Oligopoly Is