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

Question

Quizplus · Accepted Answer

In oligopoly markets, the actions of one firm can affect the profits and behavior of other firms in the market. This means that firms in oligopoly markets are interdependent and must consider the reactions of their competitors when making decisions about pricing, output, and other business strategies. In contrast, firms in competitive markets are not interdependent and can operate independently without having to consider the actions of their competitors.

One Key Difference Between an Oligopoly Market and a Competitive