Oligopoly is a market structure characterized by: O interdependence: each firm's decision affects the profit of the other firms

Economics Dec 03, 2020

Oligopoly is a market structure characterized by: O interdependence: each firm's decision affects the profit of the other firms. O substantial diseconomies of scale. O a large number of small firms. independence in decision making.

Expert Solution

Answer - Option A

Interdependence - Each firms decision affect the profit motive for other firm.

The lowering of the price is followed by other firms and the cartels are formed in this market. They are not independent. There are very few firms. Hence Option A will be correct.

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