In the context of the various degrees of competition, which of the following statements is true of oligopoly?
A)It is a market structure that has many competitors selling virtually identical products.
B)Oligopolies typically avoid intense price competition.
C)The agriculture industry is an example of oligopoly.
D)It has a single producer completely dominating the industry, leaving no room for competitors.

Question

Quizplus · Accepted Answer

Oligopolies are characterized by a small number of large firms dominating the industry, which often leads to collusion and avoiding intense price competition. The agriculture industry is not an example of oligopoly as there are many small and medium-scale producers. Option A describes perfect competition, while option D describes a monopoly.

In the Context of the Various Degrees of Competition, Which