A unique feature of an oligopolistic industry is
A) low barriers to entry.
B) standardized products.
C) diminishing marginal returns.
D) mutual interdependence.

Question

Quizplus · Accepted Answer

Mutual interdependence is a unique feature of an oligopolistic industry, as firms in such industries tend to closely monitor each other's actions and adjust their own strategies in response. This results in a situation where the decisions of one firm have a significant impact on the decisions of other firms in the industry. This interdependence can lead to collusive behavior, price wars, and other competitive or cooperative outcomes that are unique to oligopolistic industries. Low barriers to entry, standardized products, and diminishing marginal returns are not necessarily unique to oligopolistic industries and can be found in other types of industries as well.

A Unique Feature of an Oligopolistic Industry Is