An oligopoly is a market in which
A)there are only a few sellers, each offering a product similar or identical to the products offered by other firms in the market.
B)firms are price takers.
C)the actions of one seller in the market have no impact on the other sellers' profits.
D)there are many price-taking firms, each offering a product similar or identical to the products offered by other firms in the market.

Question

Quizplus · Accepted Answer

An oligopoly is a market structure characterized by a small number of large firms that dominate the market. These firms offer products that are either similar or identical to each other. Therefore, choice A is the best answer. The other choices do not accurately describe the characteristics of an oligopoly market.

An Oligopoly Is a Market in Which