A critical competitive feature of an oligopoly is:
A) the lack of interaction among the major players.
B) the presence of a domestic market which is open for foreign firms.
C) the desire of all the major players to avoid the phenomenon of diminishing returns.
D) the interdependence of the major players.
E) the lack of imitative behavior among the major players.

Question

Quizplus · Accepted Answer

The interdependence of the major players is a critical competitive feature of an oligopoly since their decisions and actions affect each other's profits and market share. This interdependence often leads to strategic behavior such as price collusion, non-price competition, or retaliation.

A Critical Competitive Feature of an Oligopoly Is