Oligopolies feature
A)the absence of barriers to entry
B)extensive competition
C)the goal of profit maximization
D)strategic interaction of firms
E)product differentiation

Question

Quizplus · Accepted Answer

Oligopolies are characterized by the strategic interaction of a small number of firms that dominate a market. These firms are aware of their mutual interdependence and their actions are influenced by the actions of their competitors. Profit maximization is the primary goal, and firms may engage in practices such as price fixing or collusion to maintain their market share. Product differentiation may also play a role in oligopolies, as firms may seek to distinguish their products from those of their competitors. However, the absence of barriers to entry and extensive competition are not features of oligopolies.

Oligopolies Feature