Although not the only ones, oligopolists produce goods that
A) have zero cross elasticities
B) are unique
C) are not differentiated
D) have infinite cross elasticities
E) have close substitutes

Question

Quizplus · Accepted Answer

Oligopolists often produce goods that, while they may be somewhat unique or differentiated, still have close substitutes in the market. This means that while their products are not perfect substitutes for one another, consumers can switch between them based on price changes, preferences, or other factors, indicating non-zero and finite cross elasticities.

Although Not the Only Ones, Oligopolists Produce Goods That