An oligopoly can be either differentiated or undifferentiated. It refers to an industry dominated by a small number of large firms, which can choose to sell either identical or differentiated products. This allows for a certain level of competitive behavior among the firms, but also enables them to collude and form a tacit or formal agreement to control the market.

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An Oligopoly _____

Question 67

Multiple Choice

An oligopoly _____

A) can be an industry dominated by many firms.
B) can be an industry dominated by one firm.
C) has to be differentiated.
D) has to be undifferentiated.
E) differentiated or undifferentiated.

Correct Answer: