A unique feature of oligopolies,when compared with other industry types,is:
A) low barriers to entry.
B) standardized products.
C) diminishing marginal returns.
D) mutual interdependence.

Question

Quizplus · Accepted Answer

Mutual interdependence refers to the situation where the actions of one firm in an oligopoly affect the others in the industry. This is a unique feature of oligopolies, as other industry types may not have such complex and interconnected relationships between firms. For instance, in a perfectly competitive market, firms have no control over the market price, and therefore, their actions do not directly affect their competitors. Thus, option D is the correct answer. The other options do not accurately describe the unique feature of oligopolies.

A Unique Feature of Oligopolies,when Compared with Other Industry Types,is