Which statement about oligopoly is false?
A) Oligopolistic firms recognize their interdependence.
B) Prices in oligopoly are predicted to fluctuate widely and frequently.
C) A few firms play an important role in the sale of a product.
D) One firm's behavior is a function of what its rivals do.

Question

Quizplus · Accepted Answer

Prices in oligopoly are predicted to be relatively stable and unchanging due to the interdependence of firms and the potential for retaliation if one firm changes its price. Fluctuations in prices would suggest a more competitive market structure.

Which Statement About Oligopoly Is False