Oligopoly is a market structure characterized by:
A)independence in decision making.
B)uncertainty about the behavior of rival firms.
C)substantial diseconomies of scale.
D)a large number of small firms.

Question

Quizplus · Accepted Answer

Oligopoly is characterized by a small number of large firms that dominate the market. These firms tend to be interdependent, meaning that their actions and decisions can significantly affect the behavior of other firms in the market. As a result, there is often uncertainty about how rivals will react to different pricing or production decisions, leading to complex strategic interactions between firms. The other options, A, C, and D, do not accurately describe the characteristics of an oligopoly.

Oligopoly Is a Market Structure Characterized By