Which of the following is found ONLY in oligopoly?
A) producers who sell identical products
B) one firm's actions affect another firm's profit
C) entry into the industry is blocked
D) sellers face a downward sloping demand curve for their product
E) the firm's demand curve is horizontal

Question

Quizplus · Accepted Answer

In oligopoly, the actions of one firm can have a direct impact on the profits of another firm since there are only a few dominant players in the market who closely observe and react to each other's moves. This interdependence is not found in other market structures such as perfect competition, monopolistic competition, or monopoly where firms are largely independent.

Which of the Following Is Found ONLY in Oligopoly