Multiple Choice
Which of the following is a possible effect of government intervention in oligopolistic markets?
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14. Oligopoly
Characteristics of Oligopoly
Multiple Choice
In an oligopoly market structure, how many producers typically dominate the market?
A
A few
B
None
C
One
D
Many
Verified step by step guidance1
Understand the definition of an oligopoly: it is a market structure characterized by a small number of firms that dominate the market.
Recall that in an oligopoly, these few producers have significant market power and their decisions affect each other.
Contrast this with other market structures: 'None' would imply no producers, 'One' corresponds to a monopoly, and 'Many' refers to perfect competition.
Recognize that the key feature of an oligopoly is that a few producers control the majority of the market share.
Therefore, the typical number of producers dominating an oligopoly market is 'a few'.
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