What is one key difference between an oligopoly market and a competitive market
A)Oligopolistic firms are price takers while competitive firms are not.
B)Oligopolistic firms are interdependent while competitive firms are not.
C)Oligopolistic firms sell completely unrelated products while competitive firms do not.
D)Oligopolistic firms sell their product at a price equal to marginal cost while competitive firms do not.

Question

Quizplus · Accepted Answer

In an oligopoly market, firms are interdependent, meaning they closely monitor and react to the actions of their competitors. This is not the case in a competitive market where each firm can act independently without worrying about the actions of others.

What Is One Key Difference Between an Oligopoly Market and a Competitive