Oligopolies are:
A) too small to affect industry output.
B) large enough to change industry output and affect market prices.
C) not able to influence the market price, but they can increase or decrease industry output.
D) able to earn higher profits than monopolies.

Question

Quizplus · Accepted Answer

Oligopolies consist of a small number of dominant firms that have the ability to affect industry output and market prices. Therefore, option B is the correct choice. Options A, C, and D are incorrect as they do not accurately describe the characteristics of oligopolies.

Oligopolies Are