Oligopoly industries are characterized by few dominant firms (B), significant entry barriers (D), and a high level of advertising (F), with mutual interdependence among firms (G). The correct option is B), D) and G).
In oligopoly industries, the correct characteristics include:
B. Few large firms dominate: Oligopolies are marked by a small number of dominant firms influencing the market.
D. Significant barriers to entry: Entry is restricted due to factors like high startup costs or control over resources.
F. High level of advertising and promotion: Oligopolistic firms often engage in extensive advertising to differentiate their products.
Oligopolies do not exhibit characteristics like perfect competition (A), homogeneous products (C), being price takers (E), as they have some control over pricing. Additionally, mutual interdependence (G) is a defining feature, where firms closely watch and react to each other's strategies due to the limited number of competitors.
Complete question:
Which of the following characteristics are associated with oligopoly industries? Select the correct option(s) by checking the box(es) accordingly.
Options:
A. Perfect competition prevails.
B. Few large firms dominate.
C. Products are homogeneous.
D. Significant barriers to entry.
E. Firms are price takers.
F. High level of advertising and promotion.
G. Mutual interdependence among firms.