Question 24
Market StructuresPricing and output decisions of sellers are highly interdependent in markets known as
- A.oligopoly
- B.perfect competition
- C.monopoly
- D.monopolistic competition
- E.imperfect competition.
Show the answer and explanation
Answer: A (oligopoly)
Explanation
In oligopoly there are few sellers, so each must consider how rivals will react to its price and output.