Oligopoly is a market structure characterized by:
A) independence in decisionmaking.
B) a horizontal demand curve.
C) a small number of interdependent firms.
D) relatively easy entry and exit.

Question

Quizplus · Accepted Answer

Oligopoly is a market structure characterized by a small number of interdependent firms, meaning that the actions of one firm will have an impact on the others. This leads to strategic interactions among firms, such as price collusion or aggressive price competition. Independence in decision making and relatively easy entry and exit are characteristics of other market structures, not oligopoly. A horizontal demand curve is not necessarily a characteristic of oligopoly.

Oligopoly Is a Market Structure Characterized By