An oligopoly is characterized by
A)few firms, which have control over market price
B)many firms and some barriers to entry
C)a large number of firms and no barriers to entry
D)a single firm and no barriers to entry
E)a single firm and significant barriers to entry

Question

Quizplus · Accepted Answer

An oligopoly is a market structure in which a few large firms dominate the market, making it difficult for new firms to enter. These few firms also have a significant degree of control over market price, meaning that they can influence the price of goods and services to some extent. Option A best describes the characteristics of an oligopoly.

An Oligopoly Is Characterized by