Which of the following is always a characteristic of the oligopoly market structure?
A) Many sellers, each small in size relative to the overall market.
B) Few sellers.
C) All sellers produce identical products.
D) Easy, low-cost entry and exit.

Question

Which of the following is always a characteristic of the oligopoly market structure? ​
A) ​Many sellers, each small in size relative to the overall market.
B) ​ Few sellers.
C) ​All sellers produce identical products.
D) ​Easy, low-cost entry and exit.

Quizplus · Accepted Answer

Oligopoly is characterized by few large firms dominating the market and controlling the production and pricing of the goods/services. It is also known for interdependence between firms and the use of non-price competition tactics. Therefore, the correct answer is B, few sellers, as it is always present in an oligopolistic market structure.

Which of the Following Is Always a Characteristic of the Oligopoly