Question

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

Answer 1

Answer:

Difficult entry

Mutual interdependence

Either homogeneous or differentiated products

Explanation:

A monopolistic market structure refers to the market where there is a small number of firms, mutual interdependence, a high degree of competition, and some level of difficulty in entering the market.  

Since there are only a few firms in the market, the economic decisions of a firm affect its rivals. So the firms are mutually interdependent on each other and a firm has to consider the reaction of its rivals before making a decision.  

The firms can either produce homogenous products or differentiated products. The high degree of competition makes it a little difficult for new firms to enter the market.