Why is the upper bound of oligopolies difficult to define?
A)The designation depends on whether firms in these markets are monitoring and reacting to specific rival behavior.
B)The firms must make their moves carefully, knowing that rivals will detect their actions and respond accordingly.
C)The firms in oligopolies are locked in tight competition with only a few other firms.
D)The number of firms in these markets in some cases can be up to 100 or 150.

Question

Quizplus · Accepted Answer

The upper bound of oligopolies is difficult to define because it depends on whether firms in these markets are monitoring and reacting to specific rival behavior. The number of firms in the market is not necessarily a determining factor in defining an oligopoly. It is the behavior of the firms that defines the market structure as an oligopoly.

Why Is the Upper Bound of Oligopolies Difficult to Define