Which of the following is a characteristic of an oligopolist

Which of the following is a characteristic of an oligopolistic market structure? O A There is a large number of sellers 0 B Each firm sells a product with no close substitute 0 C It is easy for new firms to enter the industry OD. Results of decisions of firms are dependent on the behavior of other firms

Solution

Q1. D. your answer is correct.

Q2. correct answer is option C.
explanation: if merged firms will increase the difference between their price and marginal cost, it will lead to higher prices to consumer and lower quality of product and services, hence government prefer to prohibit such mergers.

Q3. correct answer is option D.
explanation: perfect competition firms are price taker, hence they cannot exceed their prices above market price (your answer is wrong).
both the perfect competition and oligopolistic firms, maximise their profits where marginal revenue is equal of marginal cost of product.

Q4. your answer is correct.