Which of the Following Is a Characteristic of Oligopoly

question 237

Multiple Choice

Which of the following is a characteristic of oligopoly?

• A) easy entry and exit
• B) many firms
• C) strategic dependence
• D) horizontal market demand curve

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Definitions:

Dominant Firm

A company with a major share of market sales, which has the power to influence market conditions and pricing.

Nash Equilibrium

A concept in game theory where no player can benefit by changing strategies while the other players keep theirs unchanged, leading to a stable state of the game.

Payoff Matrix

A table that shows the potential outcomes of different strategies in a game or decision-making situation for all involved players.

Dominant Strategies

In game theory, strategies that result in the best possible outcome for a player, regardless of the actions taken by other players.