The key characteristic of an oligopolistic market is:
A)production of a homogeneous product.
B)mutual interdependence among firms in the market.
C)the absence of market power by any one firm.
D)ease of entry into, and exit out of, the market.

Question

Quizplus · Accepted Answer

Mutual interdependence among firms in the market is the key characteristic of an oligopolistic market. This means that the decisions made by one firm will impact the others, and they must take this into account when making their own decisions. This is in contrast to a perfectly competitive market where firms have no impact on each other, or a monopoly where there is only one dominant player. The other options (A, C, and D) do not accurately describe an oligopolistic market.

The Key Characteristic of an Oligopolistic Market Is