An oligopoly is defined as a market structure dominated by a small number of firms that have significant market power, often marketing similar or slightly differentiated products. This structure leads to strategic interactions among these firms regarding pricing, production, and marketing.

Solved

An Oligopoly

Question 134

Multiple Choice

An oligopoly:

A) is characterized by distinctive product differentiation.
B) is a market dominated by a few firms, all marketing similar products.
C) typically uses kinked distribution channels.
D) is a market where price wars are commonplace.
E) is any market containing several firms, all trying to appeal to the same target market.

Correct Answer: