Question

An oligopoly 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. Differentiated products only No entry Mutual interdependence Either homogeneous or differentiated products

Answer 1

Answer:  The characteristics that correspond to an oligopolistic market are "Mutual interdependence", "Either homogeneous or differentiated products".

Explanation: An oligopoly is a market structure, included within the forms of imperfect competition, consisting of a small group of strategically interdependent bidders (companies) and a large number of claimants (consumers).

The product in an oligopoly can be homogeneous or differentiated, depending on the type of product and the strategies taken by the companies.

This type of market is characterized by strong barriers to entry such as: Economies of scale, reputation of the company, legal barriers, etc.

The main characteristic of the oligopoly is that there is mutual interdependence between the companies, for this reason the manipulation by any company of variables under its control is likely to cause retaliation by the competing companies.