An industry that is dominated by a few firms,each of which recognizes that its own choices can affect the choices of its rivals and vice versa,is:
A)a monopoly.
B)an oligopoly.
C)characterized by monopolistic competition.
D)characterized by perfect competition.

Question

Quizplus · Accepted Answer

An industry that is dominated by a few firms and where the firms' choices are interdependent is called an oligopoly. In such a market structure, each firm's decisions can impact its competitors' decisions and the market outcome. This interdependence can lead to strategic behavior such as price collusion and advertising wars, making it different from monopolistic competition and perfect competition. A monopoly, on the other hand, is a market structure where there is only one dominant firm.

An Industry That Is Dominated by a Few Firms,each of Which