An industry comprising a small number of firms, each of which considers the potential reactions of its rivals in making price-output decisions, is called
A)monopolistic competition.
B)oligopoly.
C)pure monopoly.
D)pure competition.

Question

Quizplus · Accepted Answer

Oligopoly is characterized by a market structure in which a small number of firms dominate the industry and where each firm must consider the potential reactions of its rivals when making decisions about prices and output.

An Industry Comprising a Small Number of Firms, Each of Which