One of the defining characteristics of an oligopoly is that:
A)strategic interactions between a firm and its rivals have a major impact on its success.
B)the quantity set by an individual firm affects the others' profits.
C)the price set by an individual firm affects the others' profits.
D)All of these statements are true.

Question

Quizplus · Accepted Answer

All of the statements (A, B, and C) are true and are defining characteristics of an oligopoly. In an oligopoly, firms have a significant impact on each other's profits through strategic interactions, and the quantity or price set by one firm can affect the profits of the others.

One of the Defining Characteristics of an Oligopoly Is That