An oligopoly is a market situation in which
A) there are many firms producing differentiated products.
B) there is a single firm producing several varieties of a product.
C) all the sellers act independently of the others.
D) there are very few sellers and they recognize their strategic dependence on one another.

Question

Quizplus · Accepted Answer

An oligopoly is a market situation in which there are very few sellers and they recognize their strategic dependence on one another. These firms can engage in strategic behavior such as price fixing, establishing barriers to entry, and colluding to maximize profits. The other options (A, B, and C) do not accurately describe an oligopoly market situation.

An Oligopoly Is a Market Situation in Which