An industry with a few interdependent firms is BEST described as being:
A)in perfect competition.
B)in monopolistic competition.
C)an oligopoly.
D)a monopoly.

Question

Quizplus · Accepted Answer

An industry with a few interdependent firms is described as an oligopoly. Oligopoly is a market structure where a few large firms dominate the market and have significant control over the price of the product. These firms are interdependent because any action taken by one firm affects the other firms in the market. This market structure can often result in non-price competition, such as advertising or product differentiation. Examples of oligopolies include the automobile, beer, and cell phone industries.

An Industry with a Few Interdependent Firms Is BEST Described