McqMate
| Q. |
The most distinguishing feature of oligopaly is - |
| A. | number of firms |
| B. | interdependence |
| C. | negligible influence on price |
| D. | price leadership |
| Answer» B. interdependence | |
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Explanation: An oligopoly is a market form in which a market or industry is dominated by a small number of sellers (oligopolists). Because there are few sellers, each oilgopolist is likely to be aware of the actions of the others. The decisions of one firm influence, and are influenced by, the decisions of other firms. Some of its characteristics are: Profit maximization conditions; Number of firms; Product differentiation; Interdependence; Non-Price Competition, etc. The distinctive feature of an oligopoly is interdependence. Oligopolies are typically composed of a few large firms. |
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