One of the key characteristics of oligopoly is that
A)firms are independent of each other.
B)firms face different cost conditions.
C)each firm is aware that its actions will influence other firms and that the actions of the other firms affect it.
D)it is easy to enter the industry.
E)none of the above

Question

Quizplus · Accepted Answer

In an oligopoly, firms are interdependent, meaning each firm is aware that its decisions (such as pricing, output, and advertising) will affect, and be affected by, the decisions of other firms in the market. This interdependence is a defining characteristic of oligopolistic markets.

One of the Key Characteristics of Oligopoly Is That