The Key Characteristic of an Oligopolistic Market Is

question 34

Multiple Choice

The key characteristic of an oligopolistic market is:

• A)production of a homogeneous product.
• B)mutual interdependence among firms in the market.
• C)the absence of market power by any one firm.
• D)ease of entry into, and exit out of, the market.

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Definitions:

Equilibrium

A state where supply equals demand in a market, resulting in no inherent force for price change.

Equilibrium Price

The market price at which the quantity of goods supplied is equal to the quantity of goods demanded, also known as the market-clearing price.

Shortage

A scenario in which the need for a product surpasses the amount available at a particular price.

Quantity Demanded

The total amount of goods or services that consumers are willing and able to purchase at a given price level in a given period.