One key characteristic that is distinctive of an oligopoly market is that:
A) the demand curve facing each firm is downward sloping, with a marginal revenue curve that lies below the firm's demand curve.
B) the decisions of one seller often influences the price of products, the output, and the profits of rival firms.
C) there is only one firm that produces a product for which there are no good substitutes.
D) there are many sellers in the market and each is small relative to the total market.

Question

Quizplus · Accepted Answer

An oligopoly market is characterized by a few large firms that dominate the market and the decisions of one seller have a significant impact on the price, output, and profits of other rival firms. This interdependence among the firms sets oligopolies apart from perfect competition or monopolies.

One Key Characteristic That Is Distinctive of an Oligopoly Market