Which of the following are the assumptions of the oligopoly? A. One seller and large number of buyers…
An oligopoly market structure is characterized by a few large sellers and a large number of buyers (B), significant barriers that restrict the entry of new sellers (D), and…
Choose your answer
Which of the following are the assumptions of the oligopoly?
A. One seller and large number of buyers
B. A few sellers and large number of buyers
C. Large number of sellers and large number of buyer
D. Entry of new seller is restricted
E. Firms Interdependence
Answer and explanation
Correct answer D
An oligopoly market structure is characterized by a few large sellers and a large number of buyers (B), significant barriers that restrict the entry of new sellers (D), and strategic interdependence among rival firms in pricing and output decisions (E). Statement A describes monopoly and Statement C describes perfect/monopolistic competition.
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UGC NET Commerce