A form of industry structure characterized by a few firms, each large enough to influence market price is ?
Correct answer: C. oligopoly
- A. perfect competition
- B. monopolistic competition
- C. oligopoly
- D. monopoly
Explanation
An oligopoly consists of a few significant firms whose decisions affect market price and whose actions are interdependent. Perfect competition has many price-taking firms, while monopoly has only one.
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About Microeconomics
Individual consumers, firms and markets are examined through demand and supply, elasticity, consumer choice, production, costs, revenue and the determination of prices and output. The topic also covers market structures such as perfect competition, monopoly and oligopoly, plus market failure, externalities and the distinction between microeconomic decisions and economy-wide outcomes.
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