Which of the following may not characterize an oligopoly?

Question

Quizplus · Accepted Answer

One of the main characteristics of an oligopoly is that there are a few dominant firms in the industry. Additionally, there are typically high barriers to entry, such as economies of scale, patents, and high start-up costs. However, the firms in an oligopoly do have market power, which allows them to influence prices and output levels in the market. Therefore, option B, which suggests that an oligopoly has no market power, is not accurate.

Which of the Following May Not Characterize an Oligopoly