An oligopoly is a market that is characterized by:
A)One firm that totally dominates the supply of the product.
B)A large number of small firms 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 a market in which a few large sellers dominate the industry, meaning that the market is controlled by a small number of firms. This differs from a monopoly, in which there is only one seller, and from perfect competition, in which there are many small firms all producing identical products. Option A is incorrect because it describes a monopoly, while option B describes perfect competition. Option D may be true in some cases, but it is not the defining characteristic of an oligopoly. Therefore, option C is the correct answer.

An Oligopoly Is a Market That Is Characterized By