Which of the following is not a characteristic of an oligopoly?
A) There are few sellers.
B) The seller has considerable control over price.
C) Any duplication of facilities is wasteful.
D) Sizable investments are required to enter the market.
E) The market actions of each seller can strongly affect other sellers.

Question

Quizplus · Accepted Answer

In an oligopoly, duplication of facilities is not inherently considered wasteful. This characteristic is more closely associated with natural monopolies, where the efficiency comes from a single entity providing the service or product due to the high infrastructure costs and the inefficiency of duplication. In contrast, oligopolies are defined by a few sellers, considerable control over price, sizable investments required to enter the market, and interdependence among sellers.

Which of the Following Is Not a Characteristic of an Oligopoly