An oligopoly differs from a monopoly in that an oligopolist
A) produces where price is greater than marginal revenue.
B) maximizes profits where marginal revenue equals marginal cost.
C) has significant control over its price.
D) must consider the behavior of its rivals when it makes decisions.

Question

Quizplus · Accepted Answer

In an oligopoly, a small number of firms dominate the market, making it necessary for each firm to consider the actions and reactions of its rivals when making decisions. This interdependence is a key characteristic that differentiates oligopolies from monopolies, where a single firm has complete control over the market without direct competition.

An Oligopoly Differs from a Monopoly in That an Oligopolist