An industry that is dominated by a few firms, each of whose firms recognizes that its own choices can affect the choices of its rivals and vice versa, is:
A)a monopoly.
B)an oligopoly.
C)characterized by monopolistic competition.
D)characterized by perfect competition.

Question

Quizplus · Accepted Answer

An industry dominated by a few firms, with each firm recognizing that their choices can affect their rivals, is called an oligopoly. In an oligopolistic market, firms have a significant market power and can impact the market with their policies, pricing strategies, and other decisions. This situation is very different from a monopoly which is a market structure where there is only one supplier of a product or service.

An Industry That Is Dominated by a Few Firms, Each