Which of the following statements describes an oligopoly?
A) In an oligopoly, three or four companies usually dominate the marketplace.
B) In an oligopoly, there are many companies selling identical products.
C) In an oligopoly, prices between companies are very different.
D) In an oligopoly, there are usually one or two companies that dominate the market.

Question

Quizplus · Accepted Answer

Oligopoly is characterized by a market structure where a small number of firms dominate the market. These firms hold significant market power, and their actions can significantly impact market conditions and prices. This structure often leads to a situation where three or four companies dominate, as stated in option A.

Which of the Following Statements Describes an Oligopoly