Question

The most important characteristic of oligopoly is _________.

• A. Indeterminateness of demand curve
• B. Interdependence
• C. Element of monopoly
• D. Conflicting attitudes of firms

Answer 1

Answer: (B)

Interdependence

Oligopoly is the market in which the behaviour of only small firms dominate. The market is highly concentrated. The term oligopoly is derived from the Greek word. They produce products which are homogeneous and are not close substitutes. The most important characteristic of oligopoly is interdependence because they are dependent on each other.