Oligopoly is difficult to analyze because
A) there is no price competition among oligopolistic firms.
B) of the complex interdependence that usually exists among oligopolistic firms.
C) price is not a decision variable for oligopolistic firms.
D) there is price competition among oligopolistic firms but no competition on product quality.

Question

Quizplus · Accepted Answer

Oligopoly is characterized by a small number of firms whose decisions are highly interdependent. This complex interdependence, where the actions of one firm can significantly affect the outcomes of others, makes predicting behavior and outcomes in oligopolistic markets challenging.

Oligopoly Is Difficult to Analyze Because