Which of the Following Is a Distinguishing Characteristic of Oligopoly

question 52

Multiple Choice

Which of the following is a distinguishing characteristic of oligopoly?

• A) No one firm's actions directly affect the actions of the other firms.
• B) Firms are free to enter and exit the industry.
• C) A small number of firms compete.
• D) Natural barriers cannot prevent the entry of new firms.

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Definitions:

Independent Buyers

Individuals or entities that purchase goods and services for their consumption or use, not influenced by the manufacturer's or seller's affiliations.

Price Matching

A policy where a retailer agrees to match a lower advertised price from a competitor on identical items.

Discount Pricing

A pricing strategy where products or services are offered to customers at lower than usual prices, often to stimulate demand or clear out inventory.

Price Fixing

An illegal agreement among competitors to set prices at a certain level, aimed at manipulating the market and stifling competition.