Oligopoly is more difficult to analyze than other market models because:

A) the number of firms is so large that market behavior cannot be accurately predicted.
B) the marginal cost and marginal revenue curves of an oligopolist play no part in the determination of equilibrium price and quantity.
C) of mutual interdependence and the fact that oligopoly outcomes are less certain than in other market models.
D) unlike the firms of other market models,it cannot be assumed that oligopolists are profit maximizers.

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Zahraa Badin · Accepted Answer

Final Answer : C, Explanation :  Oligopoly is more difficult to analyze because of the mutual interdependence among firms and the uncertainty of outcomes. Unlike in other market models, firms in an oligopoly must take into account the likely reactions of their competitors to any given action they might take, which makes it more difficult to predict market behavior. Additionally, because there are only a few firms in the market, it is less likely that they will all behave as profit maximizers, adding further uncertainty to the analysis.

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