Which of the following is true of an oligopoly?
A) They engage in nonprice competition.
B) They do not react to actions of their competitors.
C) Each firm produces a small portion of the total output.
D) Firms do not care what their competitors do.

Question

Quizplus · Accepted Answer

In an oligopoly, firms often engage in nonprice competition, such as advertising and product differentiation, to gain market share without altering prices.

Which of the Following Is True of an Oligopoly