Oligopoly is a market structure:
A)that has many buyers and sellers, a homogeneous product, and allows easy entry into and exit from the industry.
B)in which barriers to entry are so high that there is only one firm in the market.
C)in which there are a few sellers and the barriers to entry are usually cost related.
D)that has characteristics of both monopoly and perfect competition and is much closer to the competitive situation.

Question

Quizplus · Accepted Answer

Oligopoly is a market structure where there are a few sellers, and the barriers to entry are usually cost-related. This means that it is difficult for new firms to enter the industry, making it a less competitive market structure than perfect competition. However, it is not as concentrated as a monopoly, where there is only one firm in the market. Oligopolies often have significant market power and can influence prices and output, leading to potential collusion and game theory behavior among the few firms in the industry.

Oligopoly Is a Market Structure