What is the key feature shared by all oligopoly markets?
A) A large number of sellers.
B) Mutual interdependence.
C) Product differentiation.
D) Easy entry and exit.

Question

Quizplus · Accepted Answer

The key feature shared by all oligopoly markets is mutual interdependence, where the actions of one firm affect the pricing and output decisions of other firms in the market. This is because there are only a few large firms in the market, and any individual firm's actions will have a significant impact on the overall market. A large number of sellers (A) is not a characteristic of an oligopoly market, as there are only a few dominant firms. Product differentiation (C) may be present, but is not a defining characteristic of oligopoly markets. Easy entry and exit (D) is also not a characteristic of oligopoly markets, as there are often significant barriers to entry due to the dominance of existing firms.

What Is the Key Feature Shared by All Oligopoly Markets