The key distinguishing characteristic of an oligopoly is the: a) existence of only one firm in the industry b) fact that in all cases firms produce a standardized product c) mutual interdependence of the firms in the market d) near total absence of advertising
Ans. C) mutual interdependence of the firms in the market
In the oligopoly market, firms are mutually interdependence and every firm remains alert to the actions of the other competing firms regarding a change in price, quantity and any other schemes. If any firm makes any changes in the price or quantity by a new policy, all other firms follow that firm to remain competitive in the market.
The key distinguishing characteristic of an oligopoly is the: a) existence of only one firm in...