In an oligopoly market, unlike in other market structures, firms
A)can act interdependently.
B)always produce a differentiated product.
C)use advertising.
D)face low barriers to entry and exit.

Question

Quizplus · Accepted Answer

In an oligopoly market, firms are few in number and can act interdependently, meaning that the actions or decisions of one firm will affect the others. This is different from other market structures where firms are more numerous and don't have as much impact on each other's decisions. While oligopoly firms may or may not produce differentiated products and use advertising, they typically face high barriers to entry and exit.

In an Oligopoly Market, Unlike in Other Market Structures, Firms