The quantity sold by an oligopolist depends not only on that firm's product price, but also on the other firms' prices and quantities sold.

Question

Quizplus · Accepted Answer

In an oligopoly, firms are interdependent; the quantity sold by one firm depends on its own price as well as the prices and quantities sold by its competitors, because there are few enough firms that each one's actions can affect market conditions.

The Quantity Sold by an Oligopolist Depends Not Only on That