One characteristic of an oligopoly market structure is
A)firms in the industry are typically characterized by very diverse product lines.
B)firms in the industry have some degree of market power.
C)products typically sell at a price equal to their marginal cost of production.
D)the actions of one seller have no impact on the profitability of other sellers.

Question

Quizplus · Accepted Answer

Firms in an oligopoly have some degree of market power, meaning they can influence prices and output levels to some extent due to the limited number of competitors in the market. This contrasts with perfect competition, where firms are price takers.

One Characteristic of an Oligopoly Market Structure Is