Asked by Tatiana Magno on May 11, 2024
Verified
Oligopoly is characterized by
A) some industries producing differentiated products.
B) some industries producing identical products.
C) few firms.
D) high barriers to entry.
E) all of the choices.
Differentiated Products
Goods or services that are distinguished from similar products in the market by unique characteristics or features.
High Barriers
Obstacles that make it difficult to enter a particular market or industry, which can include things like high investment costs, stringent regulations, or established competition.
Few Firms
A market condition characterized by a small number of companies controlling the majority of market share, often leading to oligopoly dynamics.
- Comprehend the essential traits of oligopolies and their consequences for the economy.
- Examine the effects of oligopolistic market structures on competitive dynamics and pricing for consumers.
Verified Answer
ES
Elizabeth SumerelMay 17, 2024
Final Answer :
E
Explanation :
Oligopoly is characterized by a few firms that produce either differentiated or identical products, with high barriers to entry in the industry. So, all of the choices mentioned are true for an oligopoly market structure.
Learning Objectives
- Comprehend the essential traits of oligopolies and their consequences for the economy.
- Examine the effects of oligopolistic market structures on competitive dynamics and pricing for consumers.