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Agriculture Economics QUESTION #11901
Question 1
An oligopoly is best characterized by:
  • A single dominant firm
  • A market with a small number of large firms who are mutually interdependent✔️
  • Perfect competition among many small firms
  • Free entry with zero economic profit in the long run
Correct Answer Explanation
Oligopoly involves a few large firms whose pricing and output decisions depend on anticipating rivals' reactions.