Question

An oligopolistic market structure is distinguished by several characteristics, one of which is difficult entry because barriers are significant. What are some other characteristics of this market structure? Check all that apply. Market control by a few large firms Either homogeneous or differentiated products Interdependence among firms Neither interdependence nor dependence among firms Market control by many small firms

Answer 1

Answer:

• Market control by a few large firms
• Either homogeneous or differentiated products
• Interdependence among firms

Explanation:

An Oligopolistic market structure is very concentrated which means that it is controlled by a few large firms who can decide to collude to influence market prices.

There is interdependence among the firms as the pricing decision of one firm affects the rest because it could either increase or decrease the market share that each firm enjoys. e.g. if one firm charges a lower price and the other firms don't, the lower price company will gain market share.

The goods sold in this market are either homogeneous or differentiated products which is why there is so much interdependence because products can be substituted.