The oligopoly market structure model is characterized by:
A)many firms in the industry producing differentiated products.
B)many firms in the industry producing identical products.
C)few firms in an industry with natural barriers to entry.
D)a single firm in an industry with barriers to entry.
E)many firms in an industry with barriers to entry.

Question

Quizplus · Accepted Answer

The oligopoly market structure model is characterized by few firms in an industry with natural barriers to entry. This means that there are only a limited number of firms in the industry, and entering the market is difficult due to factors like high start-up costs or government regulations. The few firms in the industry have significant market power and can influence prices and output levels.

The Oligopoly Market Structure Model Is Characterized By