oligopoly is a competitive market situation where
A) many sellers follow market price for identical, commodity products.
B) one seller sets the price for a unique product.
C) few sellers are sensitive to one another's prices.
D) many sellers compete on nonprice factors.
E) one or few sellers compete solely on nonprice factors.

Question

Quizplus · Accepted Answer

In oligopoly, there are only a few sellers, and they are sensitive to each other's prices. This is different from a monopolistic competition where many sellers compete on nonprice factors, or a monopoly where one seller sets the price for a unique product. In an oligopoly, the actions of one seller can affect the market as a whole, leading to strategic behavior and interdependence among the sellers.

Oligopoly Is a Competitive Market Situation Where