Oligopoly is a market structure that necessarily has:
A) cartels.
B) a large number of firms with homogeneous products.
C) a large number of firms with slightly different products.
D) a small number of firms but more than one.
E) only one firm.

Question

Quizplus · Accepted Answer

Oligopoly is a market structure with a small number of firms but more than one. This small number of firms allows for interdependence and strategic decision making, potentially leading to collusive behavior, price leadership, or non-price competition. However, it does not necessarily entail the presence of cartels or homogeneous/slightly different products. An oligopoly can have either identical or differentiated products depending on how the firms compete.

Oligopoly Is a Market Structure That Necessarily Has