Question

An oligopolistic market _________.a. has a small number of rival firms, and each is large relative to the size of the market.b. is characterized by firms that merely take the price that is determined by the forces of supply and demand in the market.c. has low entry barriers facing firms that may be interested in entering the market.d. has a large number of firms that are small relative to the size of the market.

Answer 1

A. Has a small number of rival firms, and each is large relative to the size of the market

Step-by-step explanation:

Oligopoly: This is a market structure which comprises of small number of large firms that bhave all or most of the sales in an industry.

It refers to a market situation in which a few firms control the supply of goods. The firms are few in number but each firm is large enough to be able to control the total industry output.

Increase in a firms output will reduce the sales of competitor firms.

Features of Oligopoly

1. Firms are interdependence on each other

2. Entry is difficult.

3. Firms are price setters. They set prices to maximize Profit.

4.There is the existence of competitors.

5. Large amount of capital is required in oligopoly

6. There are few sellers