An oligopoly is a market that is characterized by
A) one seller that totally dominates the supply of the product.
B) a large number of small companies all producing very similar products.
C) a few large sellers who dominate the market.
D) several small firms that compete primarily by differentiating their products.

Question

Quizplus · Accepted Answer

An oligopoly is characterized by a few large sellers who dominate the market. This small number of firms has significant market power, and their actions can affect the market as a whole. They may compete through non-price competition, such as advertising or product differentiation, or through price competition, and they may collude to set prices or output levels.

An Oligopoly Is a Market That Is Characterized by