What is the most important characteristic of oligopoly?

Question

Quizplus · Accepted Answer

The interdependence of profits is the most important characteristic of oligopoly. This means that firms in an oligopoly must consider the potential reactions of their competitors in making pricing and output decisions. This interdependence can lead to collusion or tacit cooperation among firms, as well as non-price competition strategies such as advertising and product differentiation. However, the presence of market power (A), barriers to entry (C), and product differentiation (B) are often a result of this interdependence, rather than being the defining characteristic themselves.

What Is the Most Important Characteristic of Oligopoly