53 What is the most important characteristic of oligopoly a

53. What is the most important characteristic of oligopoly?
a. firms have market power
b. product differentiation
c. barriers to entry
d. mutual interdependence
e. none of the above
54. In an oligopoly market,
a. a firm must lower price in order to sell more output.
b. each firm faces a demand curve that depends on how the firm expects its rivals
to behave.
c. a few firms account for a large portion of industry sales.
d. both a and b
e. all of the above
55. Oligopolists recognize their mutual interdependence because
a. there are few firms in the market.
b. the product is differentiated.
c. industry sales are large.
d. both a and b
e. all of the above

Solution

Ans:

53) Option D

mutual interdependence

The characteristics of oligopoly are small number of large firms,identical or differentiated products,mutual interdependence,barriers to entry.The most important characteristic of oligopoly is mutual interdependence.

54) Option E

all of the above

Oligopoly is a market structure in which there are small number of large firms.since the firm faces competition it must lower price in order to sell more output.Firms in oligopoly market are interdependent and each firm faces a demand curve that depends on how the firm expects its rivals to behave.

55) Option A

there are few firms in the market

In the oligopoly market structure.firms are so few that they recognize their mutual interdependence.