Final answer:
In an oligopoly, key characteristics include few large firms with significant market power and possibly product differentiation; they can collude to act like a monopoly. The characteristic that does not fit oligopolies is the production of a standard product, as they often produce differentiated products.
Step-by-step explanation:
An oligopoly is a market structure where a few large firms dominate the market and have significant market power. These firms can produce either standardized or differentiated products and are mutually interdependent. In an oligopoly, firms can either compete against one another or collude. Collusion in oligopolies typically involves firms acting together to reduce output and keep prices high, which is similar to monopolistic behavior. However, if there is no collusion, the firms may still compete, often in non-price ways due to the risk of a price war which can be harmful to all participating firms.
The correct answer to the question regarding the characteristics of oligopolies, that does not fit, is B. Standard product. While oligopolies can make standardized products, they often make differentiated products to gain market power and resist competition.