An industry with a few interdependent firms is best described as:
A)perfect competition.
B)monopolistic competition.
C)oligopoly.
D)monopoly.

Question

Quizplus · Accepted Answer

An industry with a few interdependent firms is best described as an oligopoly. In an oligopoly, a small number of firms dominate the market and their behavior is interdependent. These firms must take into account the actions and reactions of their rivals in making decisions about price and other strategic factors. This is different from perfect competition, where there are many small firms competing, monopolistic competition, where there are many sellers with differentiated products, and monopoly, where there is only one seller in the market.

An Industry with a Few Interdependent Firms Is Best Described