In an oligopoly, a few large firms dominate the market, allowing them to influence prices regardless of product differentiation due to their significant market power.

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In Oligopoly, Firms

Question 38

Multiple Choice

In oligopoly, firms:

A) are able to influence price only if the products produced by the oligopolists are standardised
B) have no influence over price regardless of whether or not the product is differentiated or standardised
C) are able to influence price only if the products produced by oligopolists are differentiated
D) by virtue of their size are able to influence price regardless of whether or not the product is differentiated or standardised

Correct Answer: