An oligopoly is a market that is characterized by:
A) one firm that totally dominates the supply of the product.
B) a large number of small firms all producing very similar products.
C) a few large sellers who dominate the market.
D) several small firms that compete primarily by differentiating their products.

Question

Quizplus · Accepted Answer

An oligopoly market is characterized by a few large sellers who dominate the market. This means that a small number of firms control the majority of the market share and have the power to affect prices and output levels. Unlike a monopoly where there is only one firm that totally dominates the market, an oligopoly has multiple firms with significant control over the market.

An Oligopoly Is a Market That Is Characterized By