Which of the following is a distinguishing characteristic of oligopoly?
A) A small number of firms compete.
B) No one firm's actions directly affect the actions of the other firms.
C) Firms are free to enter and exit the industry.
D) Natural barriers cannot prevent the entry of new firms.

Question

Quizplus · Accepted Answer

Oligopoly is characterized by a small number of firms, where each firm's actions can significantly impact the others, unlike in perfect competition.

Which of the Following Is a Distinguishing Characteristic of Oligopoly