Asked by Dathan Trejo on Jul 19, 2024
Verified
Oligopolies are industries containing only a few large firms
A) whose decisions are consciously linked.
B) and each faces a horizontal demand curve.
C) that can ignore other firms' reactions as they price,produce,and market their goods.
D) but each firm is small relative to the market.
E) that maximize output rather than profits.
Oligopolies
Market structures characterized by a small number of firms dominating the market, often leading to limited competition.
Horizontal Demand Curve
Represents a situation in which the demand for a product is perfectly elastic, indicating that consumers are willing to purchase any quantity of the product at a specific price.
- Categorize distinct market architectures, with a focal point on the qualities of oligopolies.
Verified Answer
LS
Lauren ShorrJul 20, 2024
Final Answer :
A
Explanation :
Oligopolies are characterized by a few large firms whose decisions are interdependent, meaning they must consider the potential reactions of their competitors when making pricing, production, and marketing decisions. This interdependence is a key feature distinguishing oligopolies from other market structures.
Learning Objectives
- Categorize distinct market architectures, with a focal point on the qualities of oligopolies.
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