Identify a true statement about oligopoly.
A)It is a market structure that has many competitors selling virtually identical products.
B)Firms in an oligopoly market structure typically avoid price competition.
C)Agriculture exemplifies an oligopoly market structure.
D)It has a single producer completely dominating the industry, leaving no room for competitors.

Question

Quizplus · Accepted Answer

Oligopoly is a market structure in which a few large firms dominate the market. These firms often avoid price competition and may engage in non-price competition instead, such as advertising or product differentiation. Agricultural markets generally do not fit the definition of an oligopoly, as they are often characterized by many small producers rather than a few large ones. Option A describes a perfectly competitive market, while option D describes a monopoly.

Identify a True Statement About Oligopoly