The number of firms in an oligopolistic industry
A) must be less than 10.
B) must be less than 20.
C) must be small enough that firms are interdependent.
D) must be large enough for firms to be independent.

Question

Quizplus · Accepted Answer

Oligopolistic industries are characterized by a small number of firms that are interdependent. This means that the actions of one firm will have an impact on the other firms in the industry, so the number of firms must be small enough for this interdependence to occur. However, there is no specific numerical limit for the number of firms in an oligopolistic industry.

The Number of Firms in an Oligopolistic Industry