A major difference between oligopoly and monopolistic competition is that oligopolies do not

Question

Quizplus · Accepted Answer

Monopolistic competition is characterized by many competitors, while oligopolies have a small number of large firms dominating the market. Therefore, option B is the correct choice. Option A and C are incorrect because oligopolies often have high concentration ratios (a measure of market share held by the largest firms) and high barriers to entry (due to economies of scale or patents). Option D is incorrect because both oligopolies and monopolistic competition face downward-sloping demand curves.

A Major Difference Between Oligopoly and Monopolistic Competition Is That