Question

An oligopoly market structure is distinguished by several characteristics, one of which is mutual interdependence. What are some other characteristics of this market structure? Check all that apply. Either identical or differentiated products Market control by many small firms Market control by a few large firms No entry

Answer 1

Answer:

An oligopoly market structure is distinguished by several characteristics, one of which is mutual interdependence. There is some other characteristics of this market structure which is as follows:

C: Market control by a few large firms

Explanation:

“Oligopoly” is a market structure in which only some sellers offer similar or identical products. This means only small group of companies are dominating one specific segment of the market. In case any new company tries to enter the same segment, it is difficult for it get established as there are certain barriers created by the existing companies of that segment.  

So, option A is incorrect as it says, “either identical or differentiated products” as the characteristic. Option B is also not correct as it says, “Market control by many small firms” and option D says “No Entry” which is also incorrect.