Which of the following is NOT a characteristic of oligopoly firms?
A) Strategic dependence
B) Product differentiation
C) Non-price competition, such as advertising and promotions
D) Perfectly elastic demand curves

Question

Quizplus · Accepted Answer

Perfectly elastic demand curves are not a characteristic of oligopoly firms. Oligopoly firms typically face a downward-sloping demand curve, meaning they have some control over the price they can charge for their product. Perfectly elastic demand curves are more commonly associated with perfectly competitive markets, where there are many small firms producing identical products and no firm has any pricing power.

Which of the Following Is NOT a Characteristic of Oligopoly