A characteristic of an oligopoly is:
A) mutual interdependence in pricing decisions.
B) independent pricing decisions.
C) lack of control over prices.
D) none of the above.

Question

Quizplus · Accepted Answer

An oligopoly is characterized by a few dominant firms in a market, who are mutually interdependent in making pricing decisions. This means that each firm takes into account the pricing decisions of the other firms in the market when deciding on their own prices. Therefore, A is the best choice. B and C are incorrect statements as independent pricing decisions and lack of control over prices do not accurately describe an oligopoly market.

A Characteristic of an Oligopoly Is