BUISENESS MANAGEMENT
BUSINESS STRUCTURE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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many sellers
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not as much competition-firms have some control over prices
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lots of advertising
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many barriers to entry
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Detailed explanation-1: -Determinateness of demand curve is a part of law of demand and does not fall in oligopoly. Hence, it is not a characteristic of oligopoly.
Detailed explanation-2: -Answer and Explanation: Option c) is correct: Strategic Interdependence. In an oligopolistic market, the goods are closely related, but few firms are there, so each firm is interdependent to maximize profit. They decide price and output together to capture the market.
Detailed explanation-3: -Oligopoly markets are markets dominated by a small number of suppliers. They can be found in all countries and across a broad range of sectors.
Detailed explanation-4: -The three most important characteristics of oligopoly are: (1) an industry dominated by a small number of large firms, (2) firms sell either identical or differentiated products, and (3) the industry has significant barriers to entry.