Which of the following is a distinguishing characteristic of oligopolies?
A)a standardized product
B)the goal of profit maximization
C)the interdependence among firms
D)downward-sloping demand curves faced by firms
E)a downward-sloping market demand curve

Question

Quizplus · Accepted Answer

The interdependence among firms is a distinguishing characteristic of oligopolies. This means that the actions of one firm are likely to have a significant impact on the profits and market share of other firms in the industry. Oligopolies may also have downward-sloping demand curves and aim to maximize profits, but these are not unique to oligopolies and can be found in other market structures as well. A standardized product is not a distinguishing characteristic of oligopolies, as firms may differentiate their products even in an oligopolistic market. A downward-sloping market demand curve is also not unique to oligopolies and can be found in other market structures as well.

Which of the Following Is a Distinguishing Characteristic of Oligopolies