Oligopoly is a market structure where a few interdependent firms dominate the industry. These firms have a significant market share and their actions have a direct impact on the prices and quantity of the product in the market. They also tend to engage in strategic behavior such as price fixing and collusion to maintain their dominance in the market.

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Oligopoly

Question 70

Multiple Choice

Oligopoly

A) is a market structure of many small firms
B) is the only seller of a good or service
C) is a market structure of a few consumers of a product
D) is a market structure of a few interdependent firms
E) is a more efficient market structure than perfect competition

Correct Answer: