In market structure classification, what is a key defining characteristic of an oligopolistic industry?
Answer and explanation
Correct answer: C. Mutual interdependence among a small number of dominant firms
- Step 1: In an oligopoly (such as mobile telecommunications or automotive manufacturing), decisions made by one dominant firm directly impact and trigger reactions from rival firms. Answer: Mutual interdependence among a small number of dominant firms. Why not the others: Perfectly competitive firms face horizontal demand curves and zero barriers with hundreds of tiny sellers.
Practise more Microeconomics, Business Operations, Financial Management and the Macroeconomic Environment.
Free questions with an explanation for every one, and full timed Poklicna matura (Vocational Matura Slovenia) mock tests.
More Microeconomics, Business Operations, Financial Management and the Macroeconomic Environment questions
- In microeconomics, what fundamental economic concept describes the value of the next best alternative forgone when making a decision?
- In market analysis, what effect does an increase in the market price of a normal good generally have on consumer demand, ceteris paribus?
- In microeconomic theory, what is the term for a market structure characterized by a single seller supplying a unique product with no close s…
- In business production, which of the following is classified as a fixed cost in the short run?
- In price elasticity analysis, what does a price elasticity of demand coefficient with an absolute value greater than one (|Ed| > 1) indicate…
- In economic analysis, at what point is market equilibrium achieved in a competitive market for consumer goods?