A characteristic of oligopoly that is not present in other market structures is that there
A)is only one seller and that seller holds a high level of market power.
B)are many sellers and each produces a differentiated version of the product.
C)are a small number of sellers and they have market power.
D)are many sellers that produce identical products.

Question

Quizplus · Accepted Answer

Oligopoly is characterized by a small number of sellers, typically between 2 and 10 firms, and they hold a significant amount of market power. This means that they have the ability to influence prices and output levels, and can potentially engage in anti-competitive behavior like collusion. In other market structures, such as perfect competition or monopolistic competition, there are many sellers and no single firm has the ability to control market outcomes. Therefore, the correct choice is C.

A Characteristic of Oligopoly That Is Not Present in Other