One characteristic of oligopolistic markets is

Question

Quizplus · Accepted Answer

Mutual interdependence between firms is a key characteristic of oligopolistic markets. This means that the actions taken by one firm can have a significant impact on the other firms in the market. As a result, firms must take into account the behavior of their rivals when making pricing and output decisions. This can lead to complex strategic interactions and the potential for collusion. The other options are not correct, as oligopolistic markets typically have barriers to entry and exit, the potential for long-run profits, a downward sloping demand curve, and a small number of firms, rather than a large number.

One Characteristic of Oligopolistic Markets Is