competitive market situation in which the few sellers are sensitive to each other's prices is referred to as
A) pure monopoly.
B) oligopoly.
C) monopolistic competition.
D) pure competition.
E) oligopolistic competition.

Question

Quizplus · Accepted Answer

An oligopoly is a market situation in which there are few sellers and they are sensitive to each other's prices. They often engage in price wars and non-price competition to gain a larger share of the market. Pure monopoly refers to a market situation in which there is only one seller and no close substitutes, monopolistic competition is a market situation in which there are many sellers offering differentiated products, pure competition refers to a market situation in which there are many buyers and sellers offering identical products, and oligopolistic competition is not a commonly recognized term.

Competitive Market Situation in Which the Few Sellers Are Sensitive