An oligopoly is a competitive market situation where
A)many sellers follow market price for identical, commodity products.
B)one seller sets the price for a unique product.
C)few sellers are sensitive to one another's prices.
D)many sellers compete on nonprice factors.
E)one or few sellers compete solely on nonprice factors.

Question

Quizplus · Accepted Answer

An oligopoly is a market structure characterized by a small number of firms that dominate the market. These firms are highly interdependent and are sensitive to each other's pricing, output, and other strategic decisions. Therefore, in an oligopoly, few sellers are sensitive to one another's prices as they need to closely monitor their competitors' actions to maintain their market position.

An Oligopoly Is a Competitive Market Situation Where