Oligopoly is a situation when there
A) is one firm in the industry that is large relative to the size of the economy.
B) are a few large firms in the industry.
C) are too many firms in the industry and there is excess capacity.
D) is one large firm and many smaller firms forming a competitive fringe.

Question

Quizplus · Accepted Answer

Oligopoly is a market structure where there are few large firms that dominate the industry. These firms have the ability to influence prices and output. Therefore, option B is the correct answer as it accurately describes the situation in an oligopoly. The other options are not applicable to the definition of oligopoly.

Oligopoly Is a Situation When There