Because there are only a few firms in markets with oligopolistic competition,
A)everyone is a price taker.
B)producers do not have to consider the reactions of rival firms.
C)government often encourages consolidation to reduce the number of competitors.
D)price wars may occur.
E)the many competitors will focus on product differentiation.

Question

Quizplus · Accepted Answer

With only a few firms in oligopolistic markets, firms will closely watch their competitors and be wary of potential price wars. Therefore, there may be intense competition to keep prices low or increase the quality of the products offered.

Because There Are Only a Few Firms in Markets with Oligopolistic