Which of the following is a characteristic of an oligopoly?
A) Mutual interdependence in pricing decisions.
B) Independent pricing decisions.
C) Lack of control over prices.
D) All of the above are true.

Question

Quizplus · Accepted Answer

An oligopoly is a market structure in which a few large firms dominate the market. One of the main characteristics of an oligopoly is mutual interdependence in pricing decisions, where each firm's pricing decision affects the other firms in the market. This is because there are only a few firms in the market, each with a significant market share, so their pricing decisions have a significant impact on the overall price in the market. Independent pricing decisions and lack of control over prices are not characteristics of an oligopoly.

Which of the Following Is a Characteristic of an Oligopoly