An oligopoly is a market structure in which there are
A) no good substitutes produced within the industry, giving each firm substantial market share
B) perfect substitutes produced within the industries, giving each firm only partial market share
C) monopolies competing to create monopolistic competition in the short run and oligopoly in the long run
D) at least 25 firms producing an identical good
E) only a few firms in the industry

Question

Quizplus · Accepted Answer

An oligopoly is characterized by the presence of only a few firms in the industry, which means that each firm holds a significant portion of the market share and has the power to influence market prices and outcomes.

An Oligopoly Is a Market Structure in Which There Are