A market situation in which there are a few firms that recognize their mutual interdependence is
A) monopolistic competition.
B) oligopoly.
C) monopoly.
D) regulated monopoly.

Question

Quizplus · Accepted Answer

An oligopoly is a market structure in which a few firms dominate the market and recognize the interdependence of their actions. Each firm takes into account the potential reactions of its rivals when making pricing, production, and marketing decisions. This leads to strategic behavior and competition that is not found in other market structures such as monopolistic competition or monopoly.

A Market Situation in Which There Are a Few Firms