The outputs of an oligopolistic industry
A) can be homogeneous or differentiated.
B) must cost above $100 on the market.
C) always have excise taxes imposed on them.
D) have no substitutes on the market.

Question

Quizplus · Accepted Answer

Oligopolistic industries can produce either homogeneous products (e.g. steel or cement) or differentiated products (e.g. automobiles or smartphones), so there is no requirement that the output be exclusively one or the other. Options B and C are incorrect as there is no predetermined pricing or taxation scheme for oligopolistic industries. Option D is also incorrect, as there may be substitutes (though limited ones) for goods produced in an oligopoly.

The Outputs of an Oligopolistic Industry