Which of the following statements is not true of oligopoly markets?
A)Significant economies of scale often exist in such industries.
B)Firms seek to avoid price competition.
C)Firms often compete through the use of advertising campaigns.
D)Firms act independently and are not worried about the actions of their competitors.

Question

Quizplus · Accepted Answer

The statement that firms act independently and are not worried about the actions of their competitors is not true for oligopoly markets. In fact, in oligopoly markets, firms are very aware and concerned about the actions of their competitors and often engage in strategic behavior to avoid or respond to their competitors' actions.

Which of the Following Statements Is Not True of Oligopoly