Which of the following statements is TRUE?
I. Oligopoly is a form of imperfect competition.
II. Oligopoly firms produce only differentiated products.
III. Unlike perfectly competitive markets, oligopoly markets have only a small number of firms.

Question

Quizplus · Accepted Answer

I. Oligopoly is indeed a form of imperfect competition characterized by a few firms dominating the market. III. Oligopoly markets are known for having a small number of firms, unlike perfectly competitive markets which have many firms. II is incorrect because oligopoly firms can produce either differentiated or homogeneous products.

Which of the Following Statements Is TRUE