Which of the following is NOT a characteristic of an oligopoly?
A) small number of firms
B) has some pricing power
C) the firms are interdependent
D) the good produced may be unique or not
E) low barriers to entry

Question

Quizplus · Accepted Answer

Low barriers to entry are not a characteristic of an oligopoly. Oligopolies are characterized by a small number of dominant firms in the market, which typically have significant pricing power and are dependent on each other's actions. Furthermore, the goods produced by these firms may be unique or not. However, due to their market dominance, oligopolies often have high barriers to entry, which prevent new firms from entering the market and competing with existing firms.

Which of the Following Is NOT a Characteristic of an Oligopoly