In an oligopolistic market,:

Question

Quizplus · Accepted Answer

In an oligopolistic market, where there are only a few firms, they have significant market power and can influence prices. When demand is not very elastic, meaning consumers are willing to pay a higher price for the product, the firms can charge a higher markup. This is because consumers have few other options to turn to, and the firms can still sell a significant amount of the product even if they increase the price. Therefore, the smaller the number of firms and the less elastic the demand, the greater the markup.

In an Oligopolistic Market