Which of the following statements about oligopolies is not correct?
A)An oligopolistic market has only a few sellers.
B)The actions of any one seller can have a large impact on the profits of all other sellers.
C)Oligopolistic firms are interdependent in a way that competitive firms are not.
D)Unlike monopolies and monopolistically competitive markets, oligopolies prices do not exceed their marginal revenues.

Question

Quizplus · Accepted Answer

This statement is not correct because in oligopolies, firms often have some pricing power and may choose to charge prices above their marginal revenue in order to increase profits.

Which of the Following Statements About Oligopolies Is Not Correct