Question

Which of the following is not a characteristic of oligopoly?

• A. Interdependence
• B. Determinateness of demand curve
• C. Price rigidity
• D. Element of monopoly

Answer 1

Answer: (B)

Determinateness of demand curve

Oligopoly is a market with a few firms and in which a market is highly concentrated. It can be also called as one form. Following are the characteristics of oligopoly:

1. Interdependence.
2. price rigidity
3. Element of monopoly.

Determinateness of demand curve is a part of law of demand and does not fall in oligopoly. Hence, it is not a characteristic of oligopoly.