Which of the following is a characteristic of oligopoly?
A) mutual firm independence
B) zero economic profits in the short run
C) marginal cost pricing
D) only a few firms in the industry

Question

Quizplus · Accepted Answer

Oligopoly is characterized by a small number of firms in the industry, which gives the firms some degree of market power. A mutual firm independence is a characteristic of perfect competition, zero economic profits in the short run is a characteristic of monopolistic competition, and marginal cost pricing is a characteristic of perfect competition.

Which of the Following Is a Characteristic of Oligopoly