Question

An oligopolistic market structure is distinguished by several characteristics, one of which is a difficult entry. Which of the following are other characteristics of this market structure? Check all that apply. a. Market control by many small firms. b. Market control by a few large firms. c. Either homogeneous or differentiated products. d. Neither mutual interdependence nor mutual dependence. e. Mutual interdependence.

Answer 1

Answer:

The correct answers are letters "B" and "C": Market control by a few large firms; Either homogeneous or differentiated products.

Explanation:

An Oligopoly is when a small group of two or more companies dominates a market. Oligopoly firms may consent to market collusion, and create barriers to new trade entry. If the companies do not, they are likely to be forced to lower their prices and open the market to newer smaller companies.

The ability to set prices, having homogeneous or distinctive products and price rigidity are some other characteristics of oligopolies.