Name a market that is characterized by a small number of producers who often act together to control the supply of a particular good and its market price ?
Correct answer: A. Oligopoly
- A. Oligopoly
- B. Monopoly
- C. Oligopsony
- D. Grey market
Explanation
An oligopoly is dominated by a few producers, so each firm's decisions affect the others and firms may cooperate to influence output and price. A monopoly has only one seller, while an oligopsony has a few buyers.
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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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