Which of the following is a distinguishing characteristic of oligopoly?
A) A large 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 or legal barriers prevent the entry of new firms.

Question

Quizplus · Accepted Answer

Oligopoly is characterized by a few firms dominating the market, and there are significant barriers to entry, which can be natural or legal, preventing new firms from entering the industry.

Which of the Following Is a Distinguishing Characteristic of Oligopoly