Which of the following is characteristic of oligopoly, but NOT of monopolistic competition?
A) Firms are profit- maximisers.
B) There is more than one firm in the industry.
C) Each firm faces a downward- sloping demand curve.
D) The choices made by one firm have a significant effect on other firms.

Question

Quizplus · Accepted Answer

In an oligopoly, the market is dominated by a few firms, and the actions of one firm can significantly impact the others due to the limited number of competitors. This interdependence is not characteristic of monopolistic competition, where there are many firms, and each one's actions have a negligible effect on the others.

Which of the Following Is Characteristic of Oligopoly, but NOT