One characteristic of oligopolistic markets is

Question

Quizplus · Accepted Answer

Oligopolistic markets are characterized by mutual interdependence between firms, meaning each firm's decisions and actions affect those of its competitors. This is because there are only a few large firms in the market, each with a significant market share, so their actions can have a noticeable impact on the overall market dynamics. This leads to strategic behavior by firms, such as price competition or collusion to maintain higher prices and profits. The demand curve for each firm is not perfectly horizontal, but rather influenced by the pricing decisions of competitors. Additionally, oligopolistic markets do not typically have ease of entry and exit due to the significant barriers to entry, including high start-up costs and existing firms having established brand recognition and customer loyalty.

One Characteristic of Oligopolistic Markets Is