An oligopoly market consists of: many firms which produce a standardized product
ID: 1202415 • Letter: A
Question
An oligopoly market consists of:
many firms which produce a standardized product.
firms which face perfectly elastic demand curves.
at least five firms one of which dominates the market.
firms that make independent pricing and output decisions.
a group of firms that dominate the market.
a.many firms which produce a standardized product.
b.firms which face perfectly elastic demand curves.
c.at least five firms one of which dominates the market.
d.firms that make independent pricing and output decisions.
e.a group of firms that dominate the market.
Explanation / Answer
e. a group of firms that dominate the market.
Oligopoly is a form of market in which there are few huge firms and a large number of buyers. There is high degree of interdepence among the sellers regarding the price and output decision. These few firms dominates the market.