Question

An oligopolistic market structure is distinguished by several characteristics, one of which is market control by a few large firms. Which of the following are other characteristics of this market structure? Check all that apply. Difficult entry
Mutual interdependence
No entry
Neither mutual interdependence nor mutual dependence
Either similar or identical products

Answer 1

Answer: Option A

Explanation: The basic organisational structure and several different characteristics prevailing in a business environment together constitutes a market structure. In an oligopolistic there are very few large firms which dominate the market, for example - auto industry.

As firms in the oligopolistic market are very high this results in high concentration in the market. Each firm in this market structure operates in so large scale that actions of one affects the operations of others.

Usually the capital need in such industries is too large making it difficult to entry also the need for several licenses acts as barriers to entry but there is no such thing like NO ENTRY in such industries.