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Commerce · Q116

Economics

Graduate and Post Graduate · Commerce · question 116

Q116

Which form of market structure is characterised by interdependence in decision-making as between the different competing firms?

A.
Oligopoly
Answer
B.
Perfect competition
C.
Imperfect competition
D.
None of the above

Answer: Option A

Solution

Answer: Option A
Solution:
Oligopoly form of market structure is characterised by interdependence in decision-making as between the different competing firms. An oligopoly is a market form wherein a market or industry is dominated by a small number of large sellers (oligopolists). Oligopolies can result from various forms of collusion which reduce competition and lead to higher prices for consumers. Oligopolies have their own market structure.