In an oligopoly
A) there is no product differentiation.
B) there are only a few firms.
C) firms' decisions are unrelated to each other.
D) there is free entry and exit.

Question

Quizplus · Accepted Answer

In an oligopoly, the market is characterized by a few firms. These firms are interdependent, meaning their decisions regarding prices, output, and other strategic factors are influenced by the actions of the other firms in the market. This is contrary to perfect competition (where there is free entry and exit, and no single firm can influence the market) and monopolistic competition (where there is product differentiation and many firms).

In an Oligopoly