Which are true of an oligopolistic market? A. The demand curve of oligopolistic market is indeterminate…
Strategic interdependence makes an individual firm’s demand depend on conjectures; duopoly is possible; products may be homogeneous/differentiated and advertising can…
Choose your answer
Which are true of an oligopolistic market?
A. The demand curve of oligopolistic market is indeterminate
B. There is a possibility of only two sellers
C. Product may be homogeneous or differentiated
D. Free entry and free exit
E. Advertisement cost is important
Answer and explanation
Correct answer C
Strategic interdependence makes an individual firm’s demand depend on conjectures; duopoly is possible; products may be homogeneous/differentiated and advertising can matter. Free entry is generally obstructed. Thus A, B, C, E in the broad textbook description.
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UGC NET Economics