Question

Oligopoly is difficult to analyze because____________-. A. there is no price competition among oligopolistic firms. B. there is price competition among oligopolistic firms but no competition on product quality. C. of the complex interdependence that usually exists among oligopolistic firms. D. price is not a decision variable for oligopolistic firms.

Answer 1

C. of the complex interdependence that usually exists among oligopolistic firms.

Step-by-step explanation:

An oligopoly is when there are few large firms operating in an industry. There are usually high barriers to entry and of firms.

In an oligopoly, most times, the decisions of a firm is usually dependent on what other firms are doing. Prices are set either collusively or through price leadership.

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