A firm operating in an oligopolistic market has ________ market power compared to a ________.
A) less; firm operating in a perfectly competitive market
B) the same amount of; firm operating in a perfectly competitive market
C) less; monopolist
D) the same amount of; monopolist
E) more; monopolist

Question

Quizplus · Accepted Answer

An oligopolistic market has fewer firms than perfect competition but more than a monopoly. Therefore, a firm operating in an oligopolistic market has less market power compared to a monopolist, but still has some market power due to the limited competition.

A Firm Operating in an Oligopolistic Market Has ________ Market