💼 Pre-MBA Exam Prep

An oligopoly market is characterized by:

A Many small firms
B A few large firms that are interdependent in their pricing and output decisions
C One dominant firm
D Perfect competition

✓ Correct Answer: Option B

Oligopoly: few large firms, high barriers to entry, interdependent decision-making. Firms consider rival reactions (game theory). Examples: auto, airlines, telecom. May collude or compete.

💡 Why is B) the correct answer?

The correct answer to the question "An oligopoly market is characterized by:" is Option B: A few large firms that are interdependent in their pricing and output decisions.

The other options — A) Many small firms, C) One dominant firm, D) Perfect competition — are incorrect for this Pre-MBA Exam Prep question. As explained above: Oligopoly: few large firms, high barriers to entry, interdependent decision-making. Firms consider rival reactions (game theory). Examples: auto, airlines, telecom. May collude or compete.

📚 About This Pre-MBA Exam Prep Practice Question

This 2-level Pre-MBA Exam Prep question from the Economics topic is part of BrainForge Quiz's free exam preparation library. Each question includes the correct answer and a detailed explanation to help you understand the underlying concept, not just memorize the answer.

How to use this page: Read the question above, consider all four options (A through D), then check the highlighted correct answer and explanation. For active timed practice, start a free Pre-MBA Exam Prep practice test or use flashcards for spaced repetition review.

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