The market structure of oligopoly is when
A) there are a small number of interdependent firms that constitute the entire market.
B) there is a single producer of a product.
C) there are many producers of a differentiated product.
D) there are many producers of a homogeneous product.

Question

Quizplus · Accepted Answer

Oligopoly is a market structure where a small number of interdependent firms control the market. This means that each firm's decisions affect the other firms in the market, making it difficult to make decisions independently. In an oligopolistic market, there is usually stiff competition among the few players, and they tend to be price-setters rather than price-takers. Therefore, choice A correctly describes the market structure of oligopoly. Choices B, C, and D do not accurately describe oligopoly.

The Market Structure of Oligopoly Is When