Question

Which of the following is a characteristic of an oligopoly market structure?

• A. A large number of firms selling a homogeneous product
• B. A small number of firms selling a homogeneous or a differentiated product
• C. A small number of firms selling a differentiated product
• D. A small number of firms selling a homogeneous product

Answer 1

The correct option is B A small number of firms selling a homogeneous or a differentiated product

An oligopoly is a market structure in which a few firms dominate. It is when a market is shared between few firms selling a homogeneous or a differentiated product.