One characteristic of an oligopoly market structure is:
A)firms in the industry are typically characterized by very diverse product lines.
B)firms in the industry have some degree of market power.
C)products typically sell at a price that reflects their marginal cost of production.
D)the actions of one seller have no impact on the profitability of other sellers.

Question

Quizplus · Accepted Answer

Oligopoly market structure is characterized by a small number of dominant firms that have a significant degree of market power. These firms can influence the market price and output level. Therefore, they can affect the profitability of other firms in the industry.

One Characteristic of an Oligopoly Market Structure Is